Oil prices rose about 3% on Wednesday evening after the Trump administration imposed additional sanctions on two of Russia’s largest oil companies, citing a “lack of serious commitment to a peace process to end the war in Ukraine.”
global benchmark brent By 8:18 p.m. ET, the price was up $1.83, or 2.92%, at $64.42 a barrel. usa crude oil It rose $1.74 (2.97%) to $60.24 per barrel. In regular trading on Wednesday, Brent crude rose 2% to close at $62.59 per barrel, while U.S. crude rose 2.2% to settle at $58.50.
Treasury Secretary Scott Bessent announced sanctions against Rosneft and Lukoil, saying, “Now is the time to stop the killing and for an immediate ceasefire.”
“The Treasury Department stands ready to take further action as necessary to support President Trump’s efforts to end further wars,” Bessent said. “We encourage our allies to join us and comply with these sanctions.”
The Treasury Department said the new sanctions would negatively impact the Kremlin’s ability to finance the war against Ukraine.
A senior White House official told NBC News that the new sanctions are related to the collapse of plans for a meeting between President Donald Trump and Russian President Vladimir Putin in Budapest.
President Trump is also trying to pressure India to stop buying Russian oil. New Delhi is one of the largest buyers of Russian crude oil exports.
U.S. oil prices have fallen 16% this year, and Brent crude has fallen nearly 14%. OPEC+, led by Saudi Arabia and Russia, has been increasing production in recent months.
Meanwhile, concerns are growing in the oil market that trade tensions caused by President Trump’s tariffs could slow economic growth and hurt oil demand.
Overview of Lukoil’s refinery in Volgograd, Russia, April 22, 2022.
Reuters Photographer | Reuters
