Global oil prices are rising following reports of the potential imposition of new US sanctions against Russia if the Kremlin does not agree to a peace deal to end the war against Ukraine.
This is reported by Finway
WTI and Brent Oil Price Dynamics
As of the morning of December 18, the price of WTI crude oil has risen by 50 cents to reach $56.31 per barrel, while Brent has increased by 44 cents to $60.12 per barrel. This is evidenced by data from the Investing portal, which reflects heightened investor interest in “black gold” amid geopolitical tensions.
US Sanctions and the Blockade of Venezuelan Oil Tankers
According to information from Bloomberg, US authorities are considering the possibility of imposing stricter sanctions on Russia’s energy sector if Moscow refuses to sign a peace agreement. Washington is also discussing measures against the Russian shadow fleet and companies that assist in transporting sanctioned Russian oil around the world. Meanwhile, a White House representative stated that President Donald Trump has not yet made final decisions regarding new restrictions against Russia.
An additional factor contributing to the price increase is the blockade of Venezuelan tankers, which has restricted oil supplies to the global market. According to analysts at ING, the export of 600,000 barrels per day from Venezuela, primarily to China, is at risk. However, about 160,000 barrels per day of exports to the US are likely to continue.
“The blockade of Venezuela threatens 600,000 barrels per day (b/d) of Venezuelan oil exports, primarily to China, but 160,000 b/d of exports to the US are likely to continue,” note ING analysts.
Experts emphasize that alongside the potential tightening of sanctions against Russia, this significantly increases risks for global oil supplies. However, given the oversupply in the market, analysts believe that President Trump has room for more decisive actions regarding sanctions policy towards Russian energy.