Global crude oil prices witnessed a significant jump during trading on Monday, continuing to expand their profits from the previous session, reaching their highest levels since August; almost five months ago.
Oil Now In terms of trading, the prices of Brent crude oil futures for February delivery rose by 1.81% to record $81.20 per barrel, while the prices of West Texas Intermediate (WTI) futures increased by about 2.21%, reaching $78.26 per barrel.
What Caused This Significant Rise in Oil Prices? Crude oil prices rose today after the United States and the United Kingdom imposed broader sanctions on Russian oil last Friday, and it is expected that these wider sanctions will impact Russia's oil exports to major buyers in China and India.
Some news reports indicated last Friday that the new American and British sanctions target major producers such as Gazprom Neft and Surgutneftegas, in addition to over 180 shipping vessels transporting Russian oil.
It is expected that Russian oil exports will be significantly affected by the sanctions, and it is likely that China and India will obtain more crude oil from the Middle East, Africa, and the Americas to compensate for Russian oil, which has boosted the global rise in crude prices and shipping costs.
On the other hand, oil prices received additional support from much stronger-than-expected U.S. labor market data, which showed the continued resilience of the U.S. economy despite rising interest rates, raising speculations about the potential strengthening of domestic demand in the world's largest oil consumer.
