Crude Prices Soar as US and EU Ramp Up Sanctions on Russian Energy

Core Insights - Crude oil and gasoline prices have surged, with crude reaching a two-week high and gasoline a three-week high, driven by increased sanctions on Russian energy by the US and EU [1][2][3] Sanctions Impact - The Trump administration has imposed sanctions on Rosneft PJSC and Lukoil PJSC, Russia's largest oil producers, due to Russia's insufficient commitment to peace in Ukraine, potentially isolating these companies from international business and financial systems [2] - The EU has also enacted a new sanctions package targeting Russia's energy infrastructure, sanctioning 117 shadow-fleet vessels and 45 entities aiding Russia in evading sanctions, including companies in China and Hong Kong [3] Supply Dynamics - Concerns about a global oil supply glut persist, with the IEA forecasting a record surplus of 4.0 million barrels per day (bpd) by 2026 [4] - A decrease in crude oil stored on tankers, reported by Vortexa, indicates a bullish trend for oil prices, with a 12% week-over-week decline to 78.44 million barrels as of October 17 [5] OPEC+ Production Adjustments - OPEC+ has agreed to a modest increase in crude production targets, raising them by 137,000 bpd starting in November, which is below market expectations [6] - OPEC's crude production rose by 400,000 bpd in September to 29.05 million bpd, marking the highest output in 2.5 years [6]