In a significant move to pressure Russia amid its ongoing conflict with Ukraine, the United States imposed sweeping sanctions on Russia’s oil industry on Thursday. This decision sent shockwaves through global energy markets, with U.S. benchmark crude prices surging by 6% to $62 per barrel. Analysts predict that American consumers could soon face higher gasoline prices, with the full impact expected to materialize within days. Patrick De Haan, head of petroleum analysis at GasBuddy, noted that while the exact timeline remains uncertain, motorists are likely to see price increases at the pump as early as next week. The sanctions target major Russian oil companies, including Rosneft and Lukoil, and come in response to bipartisan calls for stronger economic measures against Moscow. The European Union also announced parallel sanctions on Russian oil and gas, further intensifying the global response. Brent crude, the international benchmark, rose by $3.57 to $66.15 per barrel, reflecting the market’s reaction to the geopolitical tensions. The OPEC+ alliance, which includes Russia as a key non-OPEC member, has been gradually increasing oil production this year, but the new sanctions could disrupt this stability. The broader economic implications include potential inflationary pressures, as higher energy costs often ripple through various industries, affecting prices for goods and services. The situation remains fluid, with analysts suggesting that the duration of these price increases will depend on how Russia and the U.S. respond in the coming weeks.
Pump prices could rise after US, EU hit Russian oil companies with new sanctions and oil spikes
