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Economy

Oil jumps on expected hit to China, India's Russian supplies

Date: Jan 13, 2025

Oil extended gains for a third session on Monday, with Brent crude rising above $80 a barrel to its highest in more than four months, driven by wider US sanctions on Russian oil and the expected effects on exports to top buyers India and China.

Brent crude futures rose 1.5%, to $80.96 a barrel by 12:22 CAT after hitting the highest level since August 27 at $81.49.

US West Texas Intermediate crude was up 1.7%, at $77.87 a barrel after touching its highest since August 15 at $78.58.

Brent and WTI have climbed by about 6% since Jan. 8, surging on Friday after the US Treasury imposed wider sanctions on Russian oil. The new sanctions included producers Gazprom Neft and Surgutneftegaz, as well as 183 vessels that have shipped Russian oil, targeting revenue Moscow has used to fund its war with Ukraine.

Russian oil exports will be hurt severely by the new sanctions, pushing China and India to source more crude from the Middle East, Africa and the Americas, which will boost prices and shipping costs, traders and analysts said.

--Reuters--