Oil prices climbed over $1 on Wednesday, buoyed by the European Union’s agreement on a new sanctions package targeting Russian oil flows, which could tighten global crude supply. Brent crude rose $1.33 (1.84%) to settle at $73.52 per barrel, while U.S. West Texas Intermediate increased $1.70 (2.48%) to $70.29.
The EU’s 15th sanctions package focuses on Russia’s “shadow fleet,” which has circumvented the G7’s $60-per-barrel price cap on Russian seaborne crude since 2022. Analysts noted that the sanctions’ renewed enforcement efforts were offsetting concerns about weak demand metrics.
Tempering price gains, U.S. gasoline and distillate inventories rose more than expected, according to Energy Information Administration data. Additionally, OPEC revised its demand growth forecasts for 2024 and 2025 downward for the fifth consecutive month, citing weak Chinese demand and non-OPEC+ supply growth.