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Oil Heads for Biggest Weekly Gain Since June After US, EU Sanctions Hit Russian Energy

Short-covering tied to the new restrictions coincided with a surprise U.S. inventory draw.

Overview

  • Benchmarks eased early Friday after a sharp jump but remain up about 7% for the week, with Brent near $65.6 and WTI around $61.4.
  • The U.S. sanctioned Rosneft and Lukoil and the EU approved fresh measures targeting Russian energy infrastructure and shadow-fleet vessels, with some actions extending to LNG trade.
  • Chinese state oil firms paused some Russian purchases and Indian refiners plan steep cuts pending clarity on compliance, with analysts flagging India as most exposed to disruption.
  • Price support also came from an unexpected EIA crude draw, a planned 1 million‑barrel SPR refill for December and January, and a drop in stationary tanker stocks reported by Vortexa.
  • Analysts caution the rally may be short-lived given rising U.S. supply, OPEC+ output increases, and Standard Chartered’s $15 cut to its 2026–27 oil price forecasts.