Oil prices rise on expectations of new sanctions against Russia

The market reacted to the possibility of new US and EU sanctions against Russian crude oil.

Oil rose more than 1% on September 8 after falling last week. Reuters reports.

Brent prices rose by $0.80 (+1.2%) to $66.30 per barrel, WTI increased by $0.75 (+1.2%) to $62.62. On Friday, both indicators fell by more than 2% due to weak data on the US labor market. Last week, Brent and WTI lost more than 3%.

Prior to this, OPEC+ decided to increase production by 137 thousand barrels per day from October. This is four times less than the increase in August-September (over 550 thousand b/d), and almost three times lower than the July level (411 thousand b/d). Analysts say Saudi Arabia is trying to balance regaining market share and avoiding a winter oversupply.

A factor supporting prices has been Russia’s massive airstrikes on Ukraine, which has fueled discussions about new sanctions against Russian oil and the “shadow fleet.” This could cut Russia’s access to the market and reduce the aggressor’s export revenues.

Goldman Sachs expects a global oil surplus to persist in 2026, with rising US production outweighing reduced Russian supplies and rising demand from Asia.

Canada last week lowered its price cap on Russian oil. It could cost Russia $200 million in monthly revenue.