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US Sanctions on Gazprom Neft, Surgutneftegas, and 183 Vessels Disrupt Russian Oil, Push Brent Crude Above $80

Jan 14, 2025, 01:28 PM

The United States has imposed sweeping sanctions on Russia's energy sector, targeting major oil companies Gazprom Neft and Surgutneftegas, along with 183 vessels involved in shipping Russian oil. These sanctions have led to a significant disruption in global oil markets, pushing Brent crude prices above $80 per barrel and causing a surge in oil shipping rates. The measures have forced major importers like China and India to seek alternative oil supplies from the Middle East, Africa, and the Americas, as they refuse to accept oil from sanctioned tankers. The sanctions are part of a broader effort by the Biden administration to curtail Russia's oil revenue, affecting about 42% of its seaborne oil exports and potentially taking as much as 700,000 barrels per day off the market. The impact has also driven WTI prices to $78.84 per barrel. Analysts from Goldman Sachs have warned that oil prices could rise to $90 per barrel if the sanctions continue to impact Russian oil flows, particularly those from the shadow fleet.