Oil Prices Near Four-Month High on Russia Sanctions

14 Jan 2025 , 09:56 AM

As Chinese and Indian consumers looked for other suppliers following the Biden administration’s strictest sanctions yet on Russian energy, oil prices fell at market opening Tuesday but were close to four-month highs.

U.S. West Texas Intermediate (WTI) crude dropped 16 cents, or 0.2%, to $78.66 a barrel, while Brent LCOc1 futures declined 22 cents, or 0.27%, to $80.79 a barrel.

Following penalties issued by the U.S. Treasury Department on Friday on Gazprom Neft, Surgutneftegas, and 183 oil-trading vessels that are part of Russia’s alleged “shadow fleet” of tankers, the market saw gains of almost 2% on Monday.

One U.S. official estimates the decision will cost Russia billions of dollars every month.

U.S. President Joe Biden stated that the sanctions were not intended to affect American consumers’ budgets and that prices will stabilize following them.

Reduced demand from a large purchaser The impact of the reduced supply could be mitigated by China. According to official data released on Monday, China’s imports of crude oil declined in 2024 for the first time in 20 years outside of the COVID-19 epidemic.

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