Impact of US Sanctions on Oil Prices

Crude oil prices experienced a significant surge, with front-month contracts climbing over 1% this Wednesday. This uptick is directly attributed to the United States' latest sanctions aimed at Russia's energy sector.

Details of the Sanctions

The sanctions, which have also garnered support from the United Kingdom, specifically target two of Russia's major oil producers: PJSC Gazprom Neft and Surgutneftegas. This move has raised concerns regarding the global oil supply, especially as the northern hemisphere enters the winter months.

Market Reaction

West Texas Intermediate (WTI) for February deliveries saw a 2.10% increase, reaching $79.1 per barrel by 10:23 am ET. Similarly, Brent for March settlements rose by 1.49%, hitting $81.09 a barrel.