Oil rises in price in anticipation of new sanctions against Russia

The price of Brent oil continues to rise on Tuesday on expectations of the introduction of new sanctions against Russia in connection with the events in Ukraine.

Yesterday, National Security Adviser to the US President Jake Sullivan said that this week the States will announce new anti-Russian measures that may affect the energy sector. France and Germany have also called for new sanctions against Russia. The United States and Great Britain have already imposed restrictions on oil supplies from Russia, and now many are waiting for some steps from Europe. However, it is worth noting that Europe's dependence on Russian energy resources is quite large.

The current Brent oil quote is $108 per barrel (the daily maximum is at $109.90). The price of North American WTI oil is $103.90 per barrel (the daily maximum – $105.60). 

Last week, oil prices showed a decline: Brent – to the area of $103 per barrel, WTI – to $98. The driver of the decline was the news about the further release of oil from the strategic reserves of the United States and other countries of the International Energy Agency (IEA).

At the same time, analysts note an increase in demand for fuel in the world. An indicator of this was the record increase in prices by Saudi national company Saudi Aramco for its oil in the face of the refusal of many companies from Russian supplies. 

It is expected that in May the price of the main Arab Light grade supplied to Asia will rise by $4.4 per barrel. And this is $9.35 per barrel more than the basket of oil from Oman and Dubai, which is a record. Also, the premium for American buyers of Arab Light will grow to a historical maximum – up to $5.65 per barrel to the value of the Argus Sour Crude index (ASCI).