Oil Rises as U.S Sanctions Russia’s Gazprombank
Prices of crude oil rose successively in the last two days due to rising uncertainties in the global commodities market with the U.S. sanctions on Russia’s Gazprombank.
Brent crude futures gained 1.3% to settle at $75.2 per barrel on Friday, wrapping up the week with an over 5% increase, driven by the intensifying conflict in Ukraine, which added a geopolitical risk premium to oil prices.
WTI crude futures climbed 1.6% to $71.2 per barrel on Friday, closing the week with an over 5% increase, driven by the intensifying conflict in Ukraine, which added a geopolitical risk premium to oil prices.
Moscow ramped up its offensive after the US and UK allowed Ukraine to target deeper Russian territory with their missiles. Tensions rose between Russia and Ukraine after international media reported that the Joe Biden administration granted Kiev permission to use long-range American weapons on Russian territory for a limited time.
The Russian Ministry of Defense announced Tuesday that Ukraine attacked the Braynsk region of Russian territory at night with 6 American-made long-range tactical ATACMS missiles. The ministry statement noted that the missiles were blocked by S-400 and ‘Pantsir’ air defense missile systems.
Also, Russian President Vladimir Putin approved the doctrine that allows his country to respond with nuclear weapons if it is attacked by ballistic missiles. The Russian Ministry of Defense also announced that the army captured the Novoselidovka settlement in the Donetsk region.
The ministry reported that attacks were carried out against Ukraine’s military airport infrastructure and energy elements in 146 regions in the last 24 hours.
In response, the US imposed additional sanctions on Russia’s Gazprombank and banned imports from over 30 Chinese companies accused of using forced labor linked to the Uyghur minority.
Gazprombank is one of Russia’s largest banks and is partially owned by Kremlin-owned gas company Gazprom.
Ukraine has been urging the U.S. since the February 2022 invasion to impose more sanctions on the bank, which receives payments for natural gas from Gazprom’s customers in Europe.
The sanctions made exemptions for transactions related to the Sakhalin-2 oil and gas project in Russia’s Far East until June 28, 2025, according to an updated general license published by the Treasury Department on Nov 21. Several Japanese firms buy liquefied natural gas from Sakhalin-2.
Elsewhere, oil rig count in the US increased by 1 this week, oilfield services company Baker Hughes data showed Friday. The number of oil rigs, an indicator of short-term production in the country, rose to 479 for the week ending Nov. 22. The number of US oil rigs fell by 21 compared to one year ago.
China unveiled new policy measures aimed at boosting trade, including support for energy product imports, amid concerns over Trump’s potential tariffs. #Oil Rises as U.S Sanctions Russia’s Gazprombank NGX Shrinks by N108bn as Investors Dump OANDO, ACCESS
