Oil futures extend gain amid planned sanctions against Russia

INA-  sources

Crude oil prices surged over one percent on Tuesday amid reports about proposed sanctions by the United States and Europe against Russia. As of 1230 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $1.27 (+1.18 percent) to reach 108.8 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, jumped to $104.53 a barrel, up by $1.25 (+1.21 percent).

The price for Opec basket was recorded at $106.23 a barrel with an increase of 1.27 percent. The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey. Arab Light was available at $113.06 a barrel with an increase of 6.66 percent and the price of Russian Sokol surged to $98.62 a barrel with a 3.22 percent increase.

The United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine, raising concerns over tighter global supply, while Iran’s nuclear talks with world powers stalled. The West is planning new sanctions against Russia over civilian killings in Ukraine, with US President Joe Biden’s national security adviser saying that new US sanctions against Moscow would be announced this week. There are mounting expectations that Europe would take action to reduce transactions with Russia’s energy sector, further squeezing supplies.