Oil prices jump over 5% as market outlook turns uncertain

Oil drilling rigs

Oil prices surged on Thursday, following the US decision to impose sanctions on Russia’s two largest oil producers, amid reports that India and China are reassessing their crude imports from Moscow.

Brent crude futures for December delivery rose 5.43%, or $3.40, to $65.99 a barrel, while U.S. West Texas Intermediate (WTI) crude for the same month gained 5.62%, or $3.29, to $61.79 a barrel.

Earlier in the day, the US Treasury Department announced sanctions on Lukoil and Rosneft, intensifying economic pressure on Moscow in an effort to push for an end to the war in Ukraine.

Reports indicated that Chinese oil companies have suspended seaborne imports of Russian crude in compliance with the sanctions, while Indian refineries are preparing to take similar steps.

Russian President Vladimir Putin acknowledged that the sanctions would have consequences for Russia’s economy but insisted that they would not undermine its overall resilience.

Putin also warned that Russia would respond decisively to any attacks using US-made Tomahawk missiles, which Ukraine has reportedly requested.

Hours later, Lithuania announced that two Russian fighter jets had violated its airspace, prompting NATO to scramble several jets to intercept them.