Petrol Prices Soared Due to Sanctions: US-Russia Relations

Oil Prices on the Rise

The United States has announced new sanctions against the largest oil producers in Russia, causing a significant rise in oil prices.

Trump Pressures Putin

U.S. President Donald Trump aims to increase pressure on Vladimir Putin to end the war in Ukraine. In this context, Brent oil prices rose by 3 percent, surpassing 64 dollars per barrel, while U.S. crude oil (WTI) approached 60 dollars.

Sanctions and Their Effects

This price increase occurred immediately after the U.S. placed significant Russian energy companies such as Rosneft PJSC and Lukoil PJSC on a blacklist. Washington cited Moscow's "reluctance for peace" as the reason behind this decision. According to senior refining officials, the flow of Russian oil to major Indian refiners is expected to drop to nearly zero as a result of these sanctions.

Trump's Strategy and Future Steps

The Trump administration's approach following these sanctions remains uncertain. Warren Patterson, the commodities strategy director of ING Group, stated, “These sanctions indicate a change in Trump’s stance towards Russia and suggest that more severe measures could be taken in the future,” emphasizing that high-level strategies could have significant consequences.

Additionally, next week, Trump will meet with China’s President Xi Jinping at a conference in South Korea to discuss China's oil purchases from Russia. Notably, Indian Prime Minister Narendra Modi has assured him that he would reduce oil purchases from Russia.