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Brent Briefly Tops $66 After U.S., EU Sanctions on Rosneft, Lukoil and Tankers

Staying power looks uncertain given enforcement hurdles plus a near-term supply overhang.

Overview

  • The U.S. Treasury added Rosneft, Lukoil and 34 subsidiaries to a new sanctions package targeting Russian oil flows.
  • The European Union approved its 19th sanctions package that includes restrictions on more than 100 tankers along with various entities and individuals.
  • Oil futures jumped more than 5%, with Brent climbing back above $64 and touching $66, while WTI also advanced sharply.
  • Analyst Alexey Belogoryev describes the move in prices as a $3–4 geopolitical premium and expects any export impact to become clearer in 2–3 months, with a potential temporary dip in seaborne shipments during December–February.
  • Views diverge on durability: investor Kyle Shostak anticipates a 5–10% rise due to added costs and difficult substitution, whereas Tom Kloza cites tough enforcement and a likely supply surplus that would limit sustained gains.