Oil prices hit a three-month high on Friday, leaving traders reeling New comprehensive restrictions Against Russia as the Biden administration seeks to cut off Moscow from raw revenue during the ongoing war in Ukraine.
West Texas Intermediate Crude (CL=F) rose more than 3.5% to close at $76.57 a barrel while Brent crude futures (BZ=F), the international benchmark price, briefly touched $80 before settling at $79.76, the highest level since October.
The sanctions included the names of more than 180 ships, two oil companies, traders, insurers and top Russian officials.
“The United States is taking sweeping action against Russia’s main source of revenue to fund its brutal and illegal war against Ukraine,” Treasury Secretary Janet Yellen said. said In a statement.
Oil prices were already on an upward trend since late December, with traders uncertain about President-elect Donald Trump’s policy toward Iran. Tehran currently produces more than 3 million barrels of crude oil per day.
“The news continues to filter through [the] A tougher stance by the Trump administration on Iran could come very soon,” Dennis Kistler, senior vice president at BOK Financial, wrote in a note to clients on Friday.
“Add in freezing temperatures across much of the US, along with shrinking storage numbers, and crude has now become a new ‘fund favorite,'” he added.
JPMorgan analysts said global oil demand is expected to remain strong through January due to “boosting heating fuel consumption” in the Northern Hemisphere and early travel activity in China for the country’s Lunar New Year holiday.
Despite Friday’s sharp rise, many analysts expect oil prices to remain lower this year than in 2024.
“Despite ongoing geopolitical conflicts, a combination of recessionary factors will likely keep oil prices structurally low in 2025, with a likely price range of $60-$80 per barrel for Brent spot crude. This The $70-$90 per barrel range will dominate 2024,” Eurasia Group wrote in a note on Thursday.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow him on X @ines_ferre.
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