Written by Florence Tan
SINGAPORE (Reuters) – Oil prices reached their highest levels in more than three months at the opening of trading on Monday, continuing their rise on expectations that broader US sanctions will affect Russian crude supplies to China and India, the world's largest and third-largest importers.
Futures rose $1.35, or 1.69%, to $81.11 a barrel by 2339 GMT after hitting an intraday high of $81.44, the highest level since August 27.
US West Texas Intermediate crude rose $1.40, or 1.83%, to $77.97 a barrel after touching a high of $78.32, the highest price since October 8.
The US Treasury on Friday imposed sanctions on Russian oil producers Gazprom (MCX:) Neft and Surgutneftegas, as well as 183 ships that shipped Russian oil, targeting revenues that Moscow has used to finance its war with Ukraine.
Traders and analysts said Russian oil exports would be hit hard by the new sanctions, prompting China and India, major buyers, to source more oil from the Middle East, Africa and the Americas, which would boost prices and shipping costs.
“The latest round of OFAC sanctions targeting Russian oil companies and a very large number of tankers will be particularly important for India,” said Harry Tchilinguirian, head of research at Onyx Capital Group.
