Oil Prices Surge 5% as Trump Hits Russian Crude with Sanctions
Former U.S. President Donald Trump’s latest sanctions on Russian oil exports triggered a 5% spike in global crude prices, intensifying fears of supply shortages and inflation. The measures target key Russian energy firms, escalating geopolitical tensions.
What’s in the Sanctions?
The sanctions specifically restrict exports from Russia’s top oil companies, Rosneft and Transneft, and penalize foreign buyers. Trump stated the move aims to cut off funding for Russia’s military actions in Ukraine.
“Russia has been using energy as a weapon, and we’re putting an end to that.”
— Former President Donald Trump
Oil Market Reacts Sharply
- Brent crude rose 5% to $87 per barrel
- WTI crude climbed to $83.50
- Energy stocks (ExxonMobil, Chevron) gained 3%
Analysts warn the sanctions could remove 2 million barrels per day (bpd) from global supply, risking further price hikes.
Will OPEC+ Increase Production?
With Russian supply constrained, market watchers expect pressure on Saudi Arabia and the UAE to boost output. However, no commitments have been made yet.
India’s Dilemma: Sanctions vs. Cheap Oil
India, a major buyer of discounted Russian crude, faces a tough choice:
– Comply: Risk higher fuel prices (already near record highs)
– Defy: Face potential U.S. sanctions
“If India complies, petrol prices could surge before elections.”
— Narendra Taneja, Energy Analyst
Geopolitical Fallout: Russia & China Respond
- Russia called the sanctions “illegal” and vowed retaliation.
- China, still buying Russian oil, criticized U.S. “economic weaponization.”
What Happens Next?
- U.S. may tap Strategic Petroleum Reserve (SPR), but supplies are low.
- Oil prices could hit $100+ by late 2024 if the supply gap persists.
“Buckle up—this is just the start of oil market turbulence.”
— Vandana Hari, Vanda Insights
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