Crude oil prices extended their rebound, with WTI crude trading above USD 60 per barrel.
New US sanctions targeting major Russian oil companies, including state-owned Rosneft and Lukoil, drove the market to the upside.
These measures are part of the Trump administration’s strategy to pressure Russia regarding the conflict in Ukraine.
The sanctions are expected to disrupt Russian exports, immediately tightening global supply and prompting key importers to reassess purchases.
The latest EIA report data also supported the impact of the sanctions. The data revealed a surprise drawdown in US crude inventories, which fell by 1 million barrels. Combined with declining gasoline and distillate stocks, the data signal resilient demand in the US.
However, this headline-driven move contrasts with an overall softer macro environment. While the sanctions provide a near-term shock, persistent concerns over structural oversupply and the ongoing strategy of OPEC+ to regain market share could cap the upside. The rally’s durability will depend on the impact of US sanctions and whether Asian buyers materially curb Russian oil flows.
