Oil prices rise as US imposes sweeping sanctions on Russian oil industry | Wilnesh News

Oil prices rose more than 3% on Friday as the U.S. Treasury Department announced sweeping sanctions on the Russian oil industry.

Brent As of 10:32 a.m. ET, oil prices rose $2.82, or 3.67%, to $79.74 a barrel, U.S. crude oil It rose $2.89, or 3.91%, to $76.81 a barrel.

The sanctions target Russian oil companies Gazprom Neft and Surgutneftegas and their subsidiaries, more than 180 oil tankers, and more than a dozen Russian energy officials and senior executives. Among the top executives sanctioned is Gazprom CEO Alexander Valeryevich Dyukov.

The U.S. Treasury Department said the sanctioned ships, mostly oil tankers, are part of Russia’s “shadow fleet” that circumvents existing sanctions on the country’s energy exports.

“The United States is taking comprehensive action against Russia’s primary source of revenue that funds its brutal and illegal war against Ukraine,” Treasury Secretary Janet Yellen said in a statement.

“With today’s action, we are increasing sanctions risks related to Russian oil trade, including shipping and financial facilitation to support Russian oil exports,” Yellen said.

Bob Yawger, executive director of energy futures at Mizuho Securities, said in a note to clients on Friday that the perception in the oil market is that Indian and Chinese refineries that import Russian oil will have to compete for oil from the Middle East.

The Biden administration is trying to increase pressure on Russia and provide aid to Ukraine ahead of President-elect Donald Trump’s inauguration.

This is a development story. Please check back for updates.