NEW YORK: Oil prices climbed about 2 per cent to a four-month high on Monday on expectations that wider US sanctions on Russian oil would force buyers in India and China to seek other suppliers.
Brent futures rose $1.40, or 1.8pc, to $81.16 a barrel by 11:18 a.m. EST (1618 GMT), while US West Texas Intermediate (WTI) crude rose $2.15, or 2.8pc, to $78.72.
That put Brent on track for its highest close since Aug. 26 and WTI on track for its highest close since Aug 12, and kept both benchmarks in technically overbought territory for a second day in a row.
Moreover, with Brent and WTI front-month prices rising around 7pc over the past three trading sessions, the premium of front-month contracts over later-dated futures, known in the energy industry as time spreads, soared to their highest in several months.
The US Treasury imposed wider sanctions on Russian oil producers late last week.
Published in Dawn, January 14th, 2025
