Economic War: Washington Targets Russian Oil

With just a few days before Donald Trump’s inauguration, the outgoing American administration is strengthening its sanctions against Russian oil, pushing the price of Brent above 80 dollars. This new offensive directly targets two Russian giants in the sector and a fleet of nearly 200 ships.

The new American sanctions against Russia are driving oil prices up

The U.S. Treasury Department announced on Friday a series of major sanctions targeting the Russian energy sector, the main financier of the effort to fund the war in Ukraine. These measures, coordinated with the United Kingdom, specifically target two giants in the sector: Gazprom Neft, a subsidiary of the state-owned Gazprom group, and Surgutneftegas.

The sanctions arsenal also extends to nearly 200 oil tankers and gas carriers operating from Russia, constituting what Washington describes as a “phantom fleet.”

The outgoing Treasury Secretary, Janet Yellen, has emphasized that these measures aim to “disrupt Kremlin revenues” from the oil sector. These sanctions notably include a ban on American companies providing technical assistance services to the Russian oil sector, a provision that will take effect on January 27.

The restrictions also affect the entire supply chain, including brokers, service providers on oil fields, and political leaders in the sector. A senior U.S. official estimates that these measures could cost Russia “several billion dollars a month.”

An immediate impact on global markets

The oil market reacted instantly to these announcements, pushing prices to levels not seen in months. The North Sea Brent barrel rose by more than 3%, surpassing 80 dollars, while its American counterpart, West Texas Intermediate, approached 78 dollars.

This increase occurs in an already tense context, marked by a consistent decline in crude oil stocks in the U.S. over the past seven consecutive weeks. The cold wave hitting North America is also contributing to upward pressure, stimulating demand for heating fuels.

JPMorgan analysts anticipate a substantial increase in global oil demand in the first quarter of 2025, suggesting the possible persistence of these price tensions. Bjarne Schieldrop from SEB indicates that “the current strength of oil could establish itself over the long term.”

This new escalation of American sanctions against Russia marks a major turning point in Washington’s strategy to economically weaken Moscow while reshaping the contours of the global oil market. The effectiveness of these measures and their repercussions on the global economy will remain at the forefront of market concerns in the coming weeks.