Oil rises 5% with new US sanctions against Russia

Ibama authorizes Petrobras to explore oil in Amapá Oil prices rose 5% this Thursday (23), after the United States imposed sanctions on the main Russian suppliers, Rosneft and Lukoil, due to the war in Ukraine, expanding the previous session’s gains. Brent oil futures rose 4.65% around 9:25 am (Brasília time), to US$65.53 per barrel. US West Texas Intermediate crude rose 5% to $61.49. 📱Download the g1 app to see news in real time and for free US sanctions mean that refineries in China and India, major buyers of Russian oil, will need to look for alternative suppliers to avoid exclusion from the Western banking system, according to Saxo Bank analyst Ole Hansen. The US said it was prepared to take further action as it called on Moscow to immediately agree to a ceasefire in Ukraine. Britain sanctioned Rosneft and Lukoil last week. EU countries have approved a 19th package of sanctions against Russia, which includes a ban on imports of Russian LNG. Brent crude oil futures have moved into the market situation known as “backwardation,” with the front month trading about $2 above the contract for delivery in six months. Shortly after the revelation of US sanctions, Brent and WTI futures rose more than $2 per barrel, supported by a surprise drop in US inventories. The impact of sanctions on oil markets will depend on India’s reaction and whether Russia finds alternative buyers, said Giovanni Staunovo, an analyst at UBS. India has become the biggest buyer of discounted seaborne Russian crude oil following Moscow’s war in Ukraine. Indian refiners are likely to drastically reduce Russian oil imports due to the new sanctions, industry sources said on Thursday. Private company Reliance Industries, India’s top buyer of Russian crude, plans to reduce or completely stop such imports, according to two sources familiar with the matter. But there is still some skepticism in the market about whether US sanctions would result in a fundamental shift in supply and demand. “So far, almost all sanctions against Russia over the past three and a half years have failed to affect the country’s produced volumes or oil revenues,” said Rystad Energy analyst Claudio Galimberti. Concerns about oversupply following OPEC+ production increases limited oil’s gains on Thursday. UBS expects Brent to remain between $60 and $70. Petrobras discovered oil in an ultra-deep well in the Potiguar Basin Disclosure/Petrobras

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