Oil records its highest level in more than 3 months

Oil prices recorded their highest level in more than three months at the open today, continuing to rise amid expectations that major sanctions will affect Russian crude supplies to China and India, the largest and third largest importers of crude in the world.

Brent crude futures rose $1.35, or 1.69 percent, to $81.11 per barrel by 23.39 GMT, after recording the highest level during the day at $81.44, the highest since August 27.

US West Texas Intermediate crude increased $1.40, or 1.83 percent, to $77.97 per barrel after touching the highest level at $78.32, the highest price since October 8.

On Friday, the US Treasury Department imposed new sanctions on Russian oil producers Gazprom Neft and Surgut Oil and Gas, in addition to 183 tankers working in shipping Russian oil, targeting revenues that Moscow uses to finance its war against Ukraine.

Traders and analysts said that Russian oil exports will be severely affected by the new US sanctions, which will push main buyers China and India to obtain more oil from the Middle East, Africa and the Americas, which will increase prices and shipping costs.

Harry Tchilinguirian, head of research at Onyx Capital Group, said: “The latest round of OFAC sanctions targeting Russian oil companies and a very large number of tankers will have serious consequences for India in particular.”