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Oil Books Biggest Weekly Rise Since June After U.S. Sanctions Hit Rosneft and Lukoil

Sanctions-driven caution across Asia is colliding with bearish medium-term outlooks.

Overview

  • Brent hovered near $65.6 and WTI around $61.4 on Friday after a sharp Thursday rally, putting both benchmarks on track for roughly a 7% weekly gain.
  • Chinese state oil majors suspended short-term seaborne purchases of Russian crude and Indian refiners prepared sharp import cuts following the sanctions, according to trade and industry sources.
  • Freight strains intensified as front-month Middle East-to-China supertanker rates jumped about 16% to near two-year highs, Baltic Exchange data show.
  • Market mechanics pointed to aggressive short-covering and a return to backwardation, while an unexpected U.S. EIA crude draw and a planned 1 million-barrel SPR refill lent additional support.
  • Signals on durability remained mixed as the EU tightened energy sanctions, OPEC+ stuck to a modest November increase, and Standard Chartered cut 2026–27 oil price forecasts by about $15 per barrel.