Oil Prices Surge Amidst Sanctions on Russian Suppliers

Oil prices increased significantly after the U.S. imposed sanctions on Russian oil giants Rosneft and Lukoil due to the ongoing war in Ukraine. This move affects global oil markets, with China and India seeking alternatives to avoid sanctions, while OPEC+ remains poised to adjust production as needed.

Oil prices experienced a noteworthy surge following new U.S. sanctions on Russian oil industry giants Rosneft and Lukoil, due to Russia's persistent involvement in the Ukraine conflict. Brent crude futures climbed by nearly 5% to $65.58 a barrel, marking a continuation of the previous day's gains.

According to multiple trade sources, Chinese state oil companies have put a hold on buying seaborne Russian oil, further propelling price hikes. Nevertheless, the Kuwaiti oil minister indicated OPEC's readiness to balance any supply shortages, preventing further price escalation.

As the world adjusts to these sanctions, refineries in key Russian oil-importing countries, like China and India, are seeking new suppliers. Analysts highlight the uncertainty regarding how these sanctions will reshape oil supply and demand dynamics, given some skepticism about their lasting impact.

(With inputs from agencies.)