Oil prices rise in global markets

Oil prices rose about 5 percent on Thursday (October 23) after the United States imposed new sanctions on Russian major oil companies Rosneft and Lukoil. Reuters News

The US Treasury Department imposed new sanctions on Russian major oil companies Rosneft and Lukoil on Wednesday (October 22) for “refusing to join peace talks” to end the war in Ukraine.

According to a Reuters report, the price of Brent crude futures per barrel rose 5.4 percent to $65.98 after the US sanctions. And the price of US West Texas Intermediate (WTI) crude futures per barrel rose 5.7 percent to $61.81.

“The US sanctions will force major buyers of Russian oil such as China and India to look for alternative suppliers,” said Ole Hansen, an analyst at Saxo Bank. If not, they could be cut off from the Western banking system.’

US Treasury Secretary Scott Besant said in a statement that the move was aimed at Russia’s main financial energy sector. The aim is to reduce the Kremlin’s ability to raise revenue to continue the war.

At the same time, Scott Besant called for an immediate ceasefire in Ukraine. He said, ‘The killing must stop now and the ceasefire must be implemented immediately.’ He added that the Treasury Department is ready to take further steps if necessary to support US President Donald Trump’s efforts to end another war.’

Last week, the UK imposed sanctions on Rosneft and Lukoil. On the other hand, European Union countries approved the 19th package of sanctions against Russia due to the war. It also includes a ban on LNG imports from Russia.