Oil gains 4% after settlement on possible new sanctions on Russia
Oil prices extended gains after settlement on Wednesday, rising by more than $2 a barrel after U.S. Treasury Secretary Scott Bessent said more U.S. sanctions targeting Russia would be announced.
Brent crude futures jumped $2.44 or 3.98% to $63.76 after settlement at 3:44 p.m. EDT (1944 GMT) and U.S. West Texas Intermediate crude futures climbed $2.42 or 4.23% to $59.66.
Brent futures settled $1.27, or 2.07%, higher at $62.59 a barrel, while U.S. West Texas Intermediate crude futures climbed $1.26, or 2.20%, to $58.50.
Bessent said the U.S. sanctions would be announced on Wednesday or Thursday.
"We are going to either announce after the close this afternoon or first thing tomorrow morning a substantial pickup in Russia sanctions," Bessent told reporters at the White House on Wednesday.
Oil prices were also supported by growing U.S. energy demand.
U.S. crude oil, gasoline and distillate inventories fell last week as refining activity and demand strengthened, the Energy Information Administration said on Wednesday.
Crude stocks fell by 961,000 barrels to 422.8 million barrels last week, compared with analysts’ expectations in a Reuters poll for a 1.2 million-barrel rise.
Investors were also closely watching the progress of U.S.-China trade talks as officials from both countries are set to meet this week in Malaysia.
U.S. President Donald Trump said on Monday he expected to work out a fair trade deal with Chinese President Xi Jinping, whom he was due to meet in South Korea next week. On Tuesday, however, Trump again added to uncertainty over the meeting, saying it might not happen.
Supply concerns flared on news that a summit between Trump and Russian President Vladimir Putin had been put on hold, and on disruption fears as Western governments pressured Asian buyers to reduce their purchases of Russian oil.
Trump said he spoke with Indian Prime Minister Narendra Modi on Tuesday, adding that Modi assured him India would be limiting its oil purchases from Russia.
India’s Mint newspaper reported on Wednesday that the two countries were nearing a long-stalled trade agreement that would reduce U.S. tariffs on Indian imports to 15-16% from 50%.
Source : Reuters.com
