Oil Prices Soar After US Imposes Heavy Sanctions on Russian Energy Giants
World oil prices surged sharply after the United States imposed sanctions on Russia's two largest oil producers, Rosneft and Lukoil. This move came as President Donald Trump increased pressure on President Vladimir Putin to negotiate an end to the war in Ukraine. Brent crude prices rose as much as 2.9% and returned to trading above $64 per barrel, while West Texas Intermediate (WTI) also rose sharply following the announcement of the sanctions.
Trump accused Moscow of not showing a real commitment to peace in Ukraine and vowed to pressure Russian oil buyers like India and China. He said he would discuss Russian oil purchases with Chinese President Xi Jinping during their meeting in South Korea next week. Meanwhile, Trump claimed Indian Prime Minister Narendra Modi had promised to gradually reduce oil purchases from Russia.
This policy marks a major shift in stance from Trump, who had previously planned to meet with Putin and expressed confidence that Russia wanted to end the war. Now, the US has imposed harsh economic sanctions on two companies that accounted for nearly half of Russia's oil exports about 2.2 million barrels per day in the first half of this year. The oil and gas industry alone accounts for a quarter of Russia's federal budget, so this pressure could have a significant impact on Moscow's economy.
Meanwhile, the European Union has also agreed to adopt a new sanctions package against Russia, which will be announced next Thursday. The package targets 45 entities accused of helping Russia evade sanctions, including 12 companies from China and Hong Kong. News of these sanctions pushed oil prices up from a five-month low, coupled with reports of a decline in US crude oil inventories that helped ease concerns about oversupply. However, global oil prices are still on track for a third monthly decline due to signs of oversupply in the global market.
Key points:
New US sanctions on Rosneft and Lukoil have sent oil prices soaring, while Trump is pressuring Russia through India and China to end the war in Ukraine. (asd)
Source: Newsmaker.id
