Oil prices extended gains on Monday, with Brent crude surpassing $81 per barrel, its highest level in over four months. U.S. West Texas Intermediate (WTI) crude also climbed, reaching $78.10 per barrel. This marks a significant 6% rise since January 8, driven by new U.S. sanctions targeting Russian oil exports.
The U.S. Treasury’s expanded sanctions include Russian oil producers Gazprom Neft and Surgutneftegas, along with 183 vessels involved in Russian crude shipments. Analysts estimate these measures will disrupt the export of approximately 1.5 million barrels per day (bpd) of Russian oil, including 750,000 bpd to China and 350,000 bpd to India.
With China and India—the world’s top and third-largest oil importers—facing reduced access to Russian oil, they are expected to increase imports from alternative suppliers in the Middle East, Africa, and the Americas. This shift is likely to boost oil prices and shipping costs globally, according to market analysts.
RBC Capital analysts noted that these sanctions add significant uncertainty to the first-quarter oil market outlook. The measures double the number of tankers sanctioned for transporting Russian crude, creating logistical challenges for global oil flows.
Many of the affected tankers have previously shipped oil to Asia following earlier Western sanctions and the Group of Seven’s 2022 price cap. Some also transported Iranian oil, further compounding supply constraints.
Harry Tchilinguirian of Onyx Capital Group emphasized the impact of these sanctions on India, noting the logistical and economic repercussions for the country’s oil supply chain.
As the sanctions take effect, traders anticipate heightened volatility in global oil markets, with prices expected to remain under upward pressure.


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