Oil Prices Surge Over 4% as U.S. Sanctions Russia’s Top Energy Giants

Oil prices climbed more than 4% on Thursday after the United States announced fresh sanctions against Russia’s top oil producers, Rosneft and Lukoil, in response to Moscow’s ongoing war in Ukraine.
Brent crude jumped $2.71 to reach $65.30 a barrel, while WTI rose $2.56 to $61.06.

The sanctions, part of Washington’s broader strategy to squeeze Russia’s energy revenues, have raised concerns about global supply shortages. Analysts say Asian refiners, particularly in India, are now reassessing their Russian crude purchases to avoid U.S. secondary sanctions.

India’s major oil refiners are reviewing contracts, and Reliance Industries is reportedly considering halting Russian imports. The U.S. move follows similar sanctions by Britain and the European Union’s latest restrictions on Russian LNG imports.

However, some experts believe the spike may be short-lived, noting Russia’s ability to reroute oil to alternative markets like China and the Middle East. The U.S. Energy Information Administration also reported declining inventories, adding momentum to the price rise.