Brent Surges to $66 as US Sanctions on Russian Oil Giants Tighten Global Supply

LONDON, Oct 25 — Brent crude surged to $66 per barrel after the United States imposed sweeping sanctions on Russia’s top oil producers, Rosneft and Lukoil, intensifying global supply concerns. The move triggered a 6% price jump as traders and refiners scrambled for alternative sources. Rystad Energy estimates that 500,000–600,000 barrels per day (bpd) of Russian output could be curtailed, with India, Turkey, and China expected to reduce imports.

Brent Surges

Rosneft and Lukoil collectively export around 3 million bpd of crude and 1 million bpd of products, mainly to India, China, and Turkiye. With key Chinese refineries reportedly cancelling Russian purchases, Middle Eastern medium sour grades have seen stronger spot premiums.

Brent’s backwardation widened from $0.12 to $1.36 per barrel as market tightness increased. OPEC has indicated readiness to offset potential supply losses when it meets next month.

The US Treasury said the sanctions aim to weaken Moscow’s energy revenues and limit its ability to fund the war in Ukraine. Analysts warn of potential disruptions to global crude flows as Russian grades become politically uneconomic, driving refiners toward Middle Eastern and Atlantic Basin supplies.

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