Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
A view of the Esther offshore oil and gas platform in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | fake images
Oil prices rose on Friday as the US Treasury Department announced sweeping sanctions against the Russian oil industry.
Brent gained $1.92, or 2.5%, to $78.84 a barrel at 11:12 a.m. ET, while American crude oil rose $1.89, or 2.56%, to $75.81 per barrel. Brent surpassed $80 a barrel for the first time since October earlier in the day, hitting a session high of $80.75.
The sanctions target Russian oil companies Gazprom Neft and Surgutneftegas and their subsidiaries, more than 180 oil tankers and more than a dozen Russian officials and energy executives. Among the sanctioned executives is Gazprom Neft CEO Aleksandr Valeryevich Dyukov.
The sanctioned vessels are mostly oil tankers that are part of Russia’s “shadow fleet” that has evaded existing sanctions on the country’s energy exports, according to the Treasury Department.
“The United States is taking sweeping action against Russia’s key source of revenue to finance its brutal and illegal war against Ukraine,” Treasury Secretary Janet Yellen said in a statement.
Brent crude oil futures, 1 year
“With today’s actions, we are increasing the risk of sanctions associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports,” Yellen said.
The perception in the oil market is that Indian and Chinese refiners that have imported Russian oil will have to fight for barrels from the Middle East, Bob Yawger, executive director of energy futures at Mizuho Securities, said in a note to clients on Friday.
The Biden administration has sought to increase pressure on Russia and provide aid to Ukraine before President-elect Donald Trump takes office.
“The Biden administration opted for tougher energy sanctions, surprising the oil market as especially complacent about sanctions risks,” said Bob McNally, president of Rapidan Energy Group.
“Therefore, we expect today’s material risk premium in Brent to remain pending signals from the Trump team on whether they will continue with these sanctions,” McNally said.
