DTN Oil Update
Oil Futures Rise 5% on Fresh US Sanctions on Russia
SECAUCUS, N.J. (DTN) -- Oil futures rose 5% on Thursday, Oct. 23, morning, hitting two-week highs, following fresh U.S. sanctions on Russia's oil trade and reports of a decline in commercial crude inventories last week.
NYMEX WTI futures for December delivery were up $3, or 5.1%, at $61.50 bbl, after a two-week high at $62.08. The ICE Brent crude futures contract for December delivery rose $3.02, or 4.8%, to $65.61 bbl after a session peak at $66.12.
The surge in WTI and Brent follows three prior weeks of losses and a rally on the previous trading session driven by U.S. Energy Information Administration's data showing drawdowns in stockpiles of crude, gasoline and distillates for the week ended Oct. 17.
November RBOB gasoline futures climbed $0.0620 to $1.927 gallon, while the front-month ULSD futures contract rose $0.1275 to $2.3771 gallon.
The U.S. Dollar Index advanced by 0.202 points to 98.875 against a basket of foreign currencies.
On Wednesday, Oct. 22, the U.S. Department of the Treasury (USDT) announced sanctions against Rosneft and Lukoil blocking all property and interests associated with the companies in the United States or under the control of U.S. persons. The U.S. has imposed numerous sanctions on Russia's energy and oil trade since the invasion of Ukraine in 2022.
In 2020, during the first term of U.S. President Donald Trump, the USDT imposed sanctions on Rosneft for operating in Venezuela's oil sector, which is also on the list of nations sanctioned by the U.S. government.
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