West Texas Intermediate (WTI) oil prices, in particular, have surged to about $60.10 by Thursday morning in Asia, the highest level in nearly fourteen days. This boost followed fresh US penalties against key Russian oil firms, which led many to believe worldwide oil supplies would shrink.
Reuters reported that the Trump team sanctioned Lukoil and likewise Rosneft—Russia’s major oil companies. The prolonged conflict in Ukraine and the pending meeting between Presidents Trump and Putin are the reasons for this. According to US Treasury Secretary Scott Bessent, Russian oil companies play a crucial role in funding Russia’s military operations. Restrictions should therefore limit the flow of Russian oil, which could increase prices globally.
When the US Energy Information Administration (EIA) revealed a startling drop in crude supplies, that led to increasing oil prices even more. During the week of October 17, the supplies dropped by 961,000 barrels, despite forecasts of a 1.8 million barrel increase. Americans seem to be using more oil as a result. Despite this, experts suggest increased output by OPEC+ might cap any price increases.
