NEW YORK: Oil prices rallied nearly three per cent to their highest in three months on Friday as traders braced for supply disruptions from the broadest US sanctions package targeting Russian oil and gas revenue.

The Biden administration on Friday imposed fresh sanctions targeting Russian oil producers, tankers, intermediaries, traders and ports, aiming to hit every stage of Moscow’s oil production and distribution chains.

Brent crude futures were up $2.53, or 3.3pc, to $79.45 a barrel by 1:16 p.m. EST, after crossing $80 a barrel for the first time since Oct 7. US West Texas Interme­diate crude futures advan­c­ed $2.38, or 3.2pc, to $76.30, also a three-month high.

The contracts had rise 4pc earlier in the session after an unverified document detailing the sanctions was circulated among traders in Europe and Asia.

Sources in Russian oil trade and Indian refining told Reuters that the sanctions will cause severe disruption of Russian oil exports to its major buyers India and China.

Published in Dawn, January 11th, 2025