Oil Prices Surge 5% After US Sanctions Target Russia’s Rosneft, Lukoil

Global oil prices jumped sharply on Thursday, climbing around 5% to reach their highest levels in two weeks, after the United States imposed sweeping sanctions on Russian energy giants Rosneft and Lukoil in response to Moscow’s ongoing war in Ukraine. 

The move sent shockwaves through the global energy market and prompted refiners in China and India to consider reducing imports of discounted Russian crude.

Brent crude futures rose $3.40, or 5.4%, to settle at $65.99 per barrel, while U.S. West Texas Intermediate (WTI) gained $3.29, or 5.6%, closing at $61.79, its largest one-day increase since mid-June and the highest close since October 8.

Latest Oil Prices:

Brent Crude • 65.61 

Murban Crude • 68.79 -0.26 -0.38%

Louisiana Light • 60.81 +0.37 +0.61%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 2 days 63.36 +1.32 +2.13%

Mars US • 70.71 -0.96 -1.34%

Gasoline • 1.923 -0.003 -0.18% 

Natural Gas • 3.290 -0.054 -1.61%

David Oxley, chief climate and commodities economist at Capital Economics, described the U.S. sanctions as “a significant escalation in efforts to isolate Russia’s energy sector.” He warned that the measures could tip the global oil market into deficit next year if supply disruptions persist.

Russia is the world’s second-largest crude oil producer after the United States, according to data from the U.S. Energy Information Administration (EIA).

U.S. diesel futures surged nearly 7%, pushing refining margins to their highest level since February 2024.

Kuwait’s oil minister said the Organization of the Petroleum Exporting Countries (OPEC) is prepared to offset any potential supply shortfalls by easing current production cuts.

Meanwhile, Russian President Vladimir Putin denounced the sanctions as an attempt to “pressure Russia,” arguing that replacing Russian oil in global markets “will take time.”

The White House said it stands ready to impose additional measures if Moscow refuses to agree to an immediate ceasefire in Ukraine.

In parallel, Britain imposed similar sanctions last week on Rosneft and Lukoil, while the European Union approved its 19th sanctions package, which included a ban on imports of Russian liquefied natural gas (LNG).

The EU also added two Chinese refining companies—together processing about 600,000 barrels per day, and China Oil Hong Kong, a PetroChina subsidiary, to its sanctions list.

Industry sources said Indian refiners, which have become the largest buyers of discounted Russian crude since the start of the Ukraine conflict, are preparing to sharply reduce purchases in compliance with the new restrictions.

Among them, Reliance Industries, India’s biggest private refiner and the top importer of Russian oil, is reportedly considering either a major cutback or a complete halt to imports—potentially paving the way for a broader trade agreement with Washington.