Oil prices jump after US sanctions on Russia

(Patria) - Oil prices on world markets have significantly increased following the announcement of new US sanctions against Russia, and analysts believe that a rise in fuel prices is inevitable.

US President Donald Trump confirmed that he is introducing tough sanctions against two of Russia's largest oil companies, Rosneft and Lukoil, in an attempt to exert additional pressure on Moscow to agree to peace talks in Ukraine.

"Today is a very important day for what we are doing. Look, these are huge sanctions. Really big. They are aimed at their two largest oil companies. We hope they won't stay in effect for long. We hope the war will end," Trump said at the White House.

With this move, Washington is following the example of the United Kingdom, which introduced an almost identical package of sanctions against Rosneft and Lukoil last week.

According to data from the British government, the two companies export 3.1 million barrels of oil daily. Rosneft alone produces almost half of Russia's total oil, accounting for about 6% of global production. Earlier this year, the US and the UK already sanctioned other Russian energy giants, including Gazprom Neft and Surgutneftegas.

Oil has already become more expensive
Brent crude oil, extracted in the North Sea, rose by $3.40, or 5.4%, and settled at $65.99 per barrel. At the same time, American West Texas Intermediate (WTI) oil rose by $3.29, or 5.6%, and now stands at $61.79 per barrel. These are the largest daily percentage increases for both types of crude oil since mid-June.

Will fuel prices increase? Reduced export of Russian oil means a decrease in the total supply on the world market. According to the basic laws of supply and demand, this potentially leads to an increase in global oil prices.