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U.S. Sanctions on Russian Oil Giants and 183 Vessels Push Brent Crude Above $81, Impacting China and India

Jan 13, 2025, 05:05 AM

Oil prices have surged to their highest level in over four months, with Brent crude reaching above $81 per barrel, driven by new U.S. sanctions targeting Russian oil producers and exports. The sanctions, announced by the U.S. Treasury, include measures against major Russian oil companies Gazprom Neft and Surgutneftegas, as well as 183 vessels involved in transporting Russian oil. Among the newly sanctioned ships, 143 oil tankers handled more than 530 million barrels of Russian crude last year, about 42% of the country's total seaborne crude exports. These actions have disrupted the supply of Russian oil to key markets like China and India, prompting refiners in these countries to seek alternative sources from the Middle East, Africa, and the Americas. This shift is expected to increase spot crude prices and freight costs. The designated tankers shipped close to 900,000 bpd of Russian crude to China over the past 12 months. Since the imposition of the sanctions, oil prices have risen by 6%. The sanctions are part of a broader effort to reduce Russia's energy revenues, which have been used to fund its military activities in Ukraine.