Crude Oil Prices Up 6% In A Week, U.S. Maintains Russian Sanctions Won’t Hit Prices

The crude oil market is on the boil again with prices surging 6% in the past one week in anticipation of the U.S. sanctions of Russian oil. However, the outgoing U.S. President Joe Biden still believes that oil prices will stabilize and that consumers will not be burdened. The sanctions announced by the U.S. are the broadest package yet and directly impact Russia's oil and gas revenues. Biden's National Security Adviser, Jake Sullivan, said the sanctions also provide negotiation room to the Donald Trump administration which takes charge on January 20. The latest sanctions target Russian oil producers Gazprom Neft and Surgutneftegaz, as well as 183 vessels that form part of a shadow fleet that has so far allowed Russia to skirt sanctions to get its oil to global markets. According to Morgan Stanley, which cited data from tanker tracker Vortexa, the tankers subject to the latest sanctions carried around 1.5 million barrels of crude oil per day in 2024 which equates to around 1.4% of global oil demand.