How U.S. Sanctions on Russia affect Global Oil Prices

Crude oil prices remained stable on Monday as markets reacted to new U.S. sanctions on Russian energy companies. Crude oil is not man made product, it is a natural liquid found under the surface of earth that is refined into products that we use in today like petrol (gasoline), diesel, kerosene, and even jet fuel requires crude oil, which are used for transportation, generating electricity, and industry.

Current Crude Oil Price Levels

There is still wait for key reports from global energy organizations. The Brent crude benchmark traded above $63 per barrel on Monday and around $63 per barrel on November 12, Wednesday, while West Texas Intermediate (WTI) stayed below $60. The price movement reflected a balance between increased supply expectations and renewed geopolitical concerns.

U.S. Sanctions on Russian Oil Companies

It all happened after the U.S. administration announced sanctions on Rosneft PJSC and Lukoil PJSC. There are two major Russian oil companies that produced crude oil, Rosneft PJSC is the largest oil company and one of the biggest publicly traded oil producers in the world. The US sanctions are as part of measures linked to the ongoing conflict in Ukraine. The U.S. Energy Information Administration (EIA) is also set to release its weekly inventory data, despite ongoing government shutdown conditions in the country affecting other countries too. Some European nations, including Hungary, were granted exemptions due to energy dependency.

Rising Global Oil Supply

According to data from recent trading sessions, crude oil prices have declined in five of the past six weeks. Members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies are slowly increasing production which is leading to higher supply.

Market participants are monitoring upcoming EIA report, including the OPEC Monthly Oil Market Report and International Energy Agency (IEA) Annual Energy Outlook. These reports are scheduled for release this week and is expected to release this week and is expected to provide updated figures on demand forecasts, supply levels, and inventory changes.

The U.S. Energy Information Administration (EIA) is also set to release its weekly inventory data, despite ongoing government shutdown conditions in the country. As of now, market indicators show limited movement, with crude prices holding within a narrow range as investors await new data and official energy outlooks.