U.S. Sanctions on Gazprom Neft, Surgutneftegas, and 183 Vessels Push Brent Crude Over $81, Impacting China and India

Jan 13, 2025, 01:30 PM

New U.S. sanctions targeting Russia's oil industry, including major producers Gazprom Neft and Surgutneftegas, as well as 183 vessels that have transported Russian oil, have led to a surge in oil prices. Brent crude reached over $81 per barrel, its highest in more than four months. The sanctions aim to disrupt Moscow's revenue streams used to fund its war with Ukraine. As a result, Chinese and Indian refiners, major buyers of Russian oil, are now seeking alternative supplies from the Middle East, Africa, and the Americas, which is expected to increase both prices and freight costs. The U.S. measures have also led to a significant disruption in Russian oil exports, with some tankers under sanctions being barred from discharging oil at certain ports.