Oil prices surged nearly 3% on Friday, reaching three-month highs as traders prepared for supply disruptions from the U.S.’s most comprehensive sanctions package targeting Russia’s oil and gas revenues. Brent crude settled at $79.45 (+$2.53, +3.3%), briefly surpassing $80, while WTI closed at $76.30 (+$2.38, +3.2%). Earlier in the session, both benchmarks gained over 4% on circulating reports of the sanctions.

The Biden administration’s measures target Russia’s oil production and distribution, affecting producers, intermediaries, ports, and tankers. UBS analyst Giovanni Staunovo noted that these sanctions are likely to disrupt exports to India and China, making Russian oil more expensive. With their implementation just days before President-elect Donald Trump’s inauguration, the sanctions could remain as a tool in negotiations over Ukraine.

Additional support for oil prices came from a surge in heating fuel demand due to extreme cold across the U.S. and Europe. Ultra-low sulfur diesel futures rose 4.8%, reaching $104.62 per barrel, the highest since July. Analysts at JPMorgan expect global oil demand to increase by 1.6 million barrels per day in Q1 2025, driven by heating oil, kerosene, and LPG consumption.

On Mobile? Click here to download the PDF

mars
  • Where: La Quinta Resort & Club, La Quinta, California
  • Attending: Curtis Chandler (239.405.3365)
  • Conference Website
opis
  • Where: Charlotte Harbor, Florida
  • Attending: David Cohen (954-729-4774), Brian Baker (239)297-4519
  • Conference Website