Due to the increasing concern of the supply problem arising from the sanctions, the price of oil has risen to a 5-month high

Oil’s extended gains rose to a five-month high as fears of supply disruptions to major importers China and India grew following broad sanctions on Russian crude.

West Texas Intermediate crude (CL=F) rose nearly 3% to settle at $78.82 a barrel, its highest level since August, while Brent futures (BZ=F) settled at $81.01.

The move follows a 4% increase on Friday in response to broad U.S. sanctions against Moscow, targeting oil executives, traders and more than 180 vessels, bringing the total number of sanctioned vessels to 451. JPMorgan analysis.

“Akin to Indian refiners taking Russian oil under sanctions in tankers or in ships insured by Russian insurers, there are signs that China is also becoming a less-than-licensed buyer,” wrote Natasha Kaneva, head of global commodities research at JPMorgan. A recent note.

Despite the recent rally, Caneva and her team expect Brent prices to average $73 for 2025.

Oil has been trending higher since the start of the year, with WTI up nearly 8% while Brent rose 7% on cooler-than-expected temperatures and inventories.

“Lower temperatures have increased demand for heating energy, which has led to increased consumption of fossil fuels,” said Antonio Di Giacomo, senior market analyst at foreign exchange trading platform XS.com.

The Organization of the Petroleum Exporting Countries and its partners, or OPEC+, have indicated that more barrels will enter the market as they begin to unwind their output cuts.

The measure was repeatedly extended last year.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X @ines_ferre.

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