Oil Prices Surge Amid Sanctions on Russia

Oil prices have risen for the fourth consecutive week, driven by U.S. sanctions on Russian energy trade, which have tightened global supply and increased shipping rates. Brent crude futures rose to $81.84 per barrel, while West Texas Intermediate hit $79.4 per barrel, with additional support from anticipated U.S. interest rate cuts and increased kerosene demand due to cold weather. The U.S. Energy Information Administration (EIA) reported a 2 million barrel inventory dip, with gasoline and distillate inventories showing significant increases, although still below the five-year average. The American Petroleum Institute (API) also noted a draw of 2.6 million barrels from U.S. crude inventories, despite a large build in product inventories. The market remains concerned about potential supply disruptions following U.S. sanctions on Russia, which could reduce global oil supply by close to 1 million barrels daily. Ongoing geopolitical tensions and inventory changes are contributing to price volatility and market uncertainty.