Core Insights - Crude oil and gasoline prices have increased following new sanctions imposed by the US and EU on Russian energy, which may disrupt Russian crude production and exports [1][2][3] Sanctions and Regulatory Actions - The Trump administration has announced sanctions on Rosneft PJSC and Lukoil PJSC, Russia's largest oil producers, due to insufficient commitment to peace in Ukraine, potentially isolating these companies from international financial systems [2] - The EU has implemented 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] Market 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, which fell by 12% week-over-week to 78.44 million barrels, is seen as bullish for oil prices [4] - OPEC+ has agreed to a modest increase in crude production targets, with a 137,000 bpd increase starting in November, which is below market expectations [5] - OPEC's crude production rose by 400,000 bpd to 29.05 million bpd in September, marking the highest level in 2.5 years [5]
Crude Continues Higher on US and EU Sanctions on Russian Energy