U.S. Sanctions on Russian Oil: Uncertain Impact on Global Supply

The IEA warns that recent U.S. sanctions on Russian oil may disturb Russia's supply chains. The full impact remains unpredictable, with potential for tighter oil supplies as crude prices surpass $80 a barrel. The sanctions come amidst uncertain outlooks for both Russia and Iran's oil production.

The International Energy Agency (IEA) cautioned that the latest U.S. sanctions against Russian oil, announced last Friday, could significantly disrupt Russia's oil supply and distribution networks. In its monthly oil market report released on Wednesday, the IEA maintained its supply forecasts for both Russia and Iran, citing an uncertain outlook regarding the full impact of these sanctions.

Despite holding steady on forecasts, the agency noted that Washington's new measures could lead to a tightening of crude oil and fuel balances worldwide. However, the comprehensive effects on global oil markets and access to Russian supply remain uncertain.

Additionally, the IEA highlighted that stricter sanctions, combined with a cold weather spell in the northern hemisphere, have pushed crude oil prices above $80 per barrel in early January. As of 0850 GMT, Brent futures were trading at $80.12 per barrel.

(With inputs from agencies.)