itstargetnews
By Florence Tan
SINGAPORE (Reuters) – Oil prices hit their highest level in more than three months at the open on Monday, extending their rally on expectations that wider U.S. sanctions will affect supplies of Russian crude oil to the first and third largest importers of China and India.
futures rose $1.35, or 1.69%, to $81.11 a barrel by 2339 GMT after hitting an intraday high of $81.44, the highest since Aug. 27.
US West Texas Intermediate crude rose $1.40, or 1.83% to $77.97 a barrel after hitting a high of $78.32, the highest price since Oct. 8.
The U.S. Treasury on Friday imposed sanctions on Russian oil producers Gazprom (MCX: ) Neft and Surgutneftegas, as well as 183 vessels that ship oil to Russia, targeting the revenue Moscow uses to fund its war in Ukraine.
Russia’s oil exports will be hit hard by the new sanctions, which will push top buyers China and India to source more oil from the Middle East, Africa and the Americas, driving up prices and costs. to send, traders and analysts said.
“The latest round of OFAC sanctions targeting Russian oil companies and a large number of tankers could be particularly consequential for India,” said Harry Tchilinguirian, head of research at Onyx Capital Group.
