DW: US sanctions against Moscow increase oil prices

Due to new US sanctions against Russia, oil prices have increased by about five percent within two days. This price increase will also lead to increased goods costs.

New US sanctions against Russian oil producers and oil tankers carrying oil are expected to have a significant impact on the world oil market. The sanctions are expected to reduce significantly within a short time Russia's fleet of tankers for oil export, which will also bring increased goods costs,” said Matt Wright, analyst of the firm Kpler.

Older tankers

Most of the 183 tankers on which direct sanctions were imposed belong to the so-called “the ghost float” Russia uses to export oil. It is about often outdated tankers that circulate beneath exotic flags. Using such ships, the Kremlin tries to conceal the relationship between ownership and contractors.

Over 530 million barrels of crude oil, some 42 percent of Russia's total exports of crude oil by sea, have been transported during 2024. Of these some 300 million barrels have been sent to China and the rest to India.

In addition to an embargo on vessels from Washington has imposed new embargos on two of the largest Russian oil companies, Gazprom Neft and Surgutneftegas.

The highest level of several months

The “oil prices from the Middle East, Africa and Brazil have increased in recent months due to increased demand from China and India”, a representative of the Indian oil processing industry said. We have no choice but to rely on Middle Eastern oil. And we can also consider the possibility of importing oil from the US”.

Oil exports are extremely important for Russia to finance the war in Ukraine. Some tankers have even transported oil from Iran, to which sanctions are also in force.

The absence of Russian bid has raised oil prices to the highest level for several months. Following the proclamation of new sanctions, oil prices rose worldwide to the highest level of several months, amounting to over $81 per barrel. /DW/