Oil Futures Extend Rally on Russia Sanctions
Oil futures rise to a five-month high as the market evaluates the likely impact on supply of increased U.S. sanctions against Russian oil.
"That's bullish, especially because of reports of India and China turning away tankers," says Phil Flynn of the Price Futures Group. Flynn questions the timing of the decision days before President Biden is due to leave office and as cold weather in Europe and the U.S. drives demand for heating. "Right now supplies are tight everywhere you look. We have a very tight physical market and potentially record demand for heating fuels in the next couple of weeks, and now's the time to put on sanctions?" he says.
WTI settles up 2.9% at $78.82 a barrel, and Brent rises 1.6% to $81.01 a barrel, their highest settle levels since August.
Source : Dow Jones Newswires
