Oil rises by 4 % after US sanctions against Russian companies

Oil prices rise after new US sanctions against Russian companies

Global markets reacted with an increase in oil prices by more than 4 % after implementation new US sanctions against Russian oil companies.
According to Reuters, Brent rose higher $91 per barrel, and WTI was trading near $87.

The new restrictions apply to several large Russian energy corporations, as well as transport and insurance companies, The company is involved in schemes to circumvent the price ceiling.

«The market is nervous about any steps that could reduce Russian oil supplies. This creates risks for global supply,» analysts said. Goldman Sachs.

Impact on the global economy

The rise in oil prices has led to pressure on inflation, especially in the EU, where winter can increase energy demand.
At the same time the technology sector in the US and Asia reacted with a drop in quotations due to concerns about rising logistics and energy costs.

«If oil prices exceed $95 per barrel and remain there, this could again accelerate global inflation and force central banks to postpone rate cuts,» the IMF said.

Context.

The sanctions are part of a new package of pressure on Russia that includes energy, financial and defence sectors.
Washington has stated that their goal is to limit the revenues of the Russian budget, The money is used to finance the war against Ukraine.