US Sanctions on Russian Oil Boost WTI Above $60 Amid Rising Global Supply Risks

The U.S. administration has authorized the purchase of 1 million barrels of crude oil to partially replenish the Strategic Petroleum Reserve (SPR), signaling a strategic move amid current price levels near cyclical lows. Concurrently, President Donald Trump announced new sanctions against Russia's largest oil companies, Lukoil and Rosneft, aiming to cut funding for the Russian war effort and encourage a peace process in Ukraine. These sanctions are expected to restrict global oil supply, contributing to a rebound in oil prices above $60 per barrel for West Texas Intermediate (WTI) and a rise in Brent crude to over $62. Additionally, trade talks between the U.S. and India suggest a potential reduction in India's imports of Russian crude, further impacting global demand patterns. U.S. crude inventories have also declined, tightening near-term supply alongside these geopolitical and strategic developments. Overall, these combined factors reflect a complex interplay of supply constraints, geopolitical tensions, and strategic stockpiling influencing the oil market.