"Oil prices surge as US sanctions Russia's Rosneft and Lukoil; White House weighs China tech limits"

Oil Prices Rise After US Imposes Sanctions on Russian Firms

The price of oil has increased after the United States imposed restrictions on Russia’s two largest energy companies, intensifying pressure on Moscow to engage in talks to end its conflict in Ukraine.

The new measures against Rosneft and Lukoil mark the first such actions by the US since the current administration took office in January. Assets owned by the two firms in the US have been blocked, and American businesses and citizens are now prohibited from dealing with them.

Notably, the US is also warning of penalties against foreign financial institutions that continue transactions with these companies—potentially affecting banks assisting in Russian oil sales to countries such as China, India, and Turkey.

Reports indicate that Indian state-owned refiners are evaluating their oil purchases from Russia to confirm that none originates directly from Rosneft or Lukoil.

Following the US announcement, Brent crude rose by 3.8% to $64.95 per barrel, adding to a 2% gain from the previous day.

This rebound moves oil prices away from the five-month low of $60 reached earlier in the week, which had raised expectations of declining inflationary pressures.