Crude Oil Price Rose ~2% on Monday: US Imposed Sanctions on Russian Crude

On Monday, January 13, 2025, crude oil prices rose by approximately 2%, reaching $80.99 at 08:35 AM IST. This increase follows a strong rally last week, driven by the United States’ imposition of tough sanctions on Russian oil exports. On Friday, January 11, 2025, oil prices surged nearly 3%, hitting their highest level in three months.

US Imposes Stringent Sanctions on Russian Crude 

According to news reports, the United States is set to impose some of its most severe sanctions on the Russian oil industry, targeting 180 vessels, numerous traders, two major oil companies, and several top Russian oil executives.

With President-elect Donald Trump’s inauguration on January 20 approaching, expectations are rising that the Biden administration will tighten sanctions against both Russia and Iran, especially as oil inventories remain low.

Rising Demand Due to Cold Weather in the US and Europe 

Oil prices are also benefiting from growing expectations of higher demand as a cold snap affects major energy markets in both the United States and Europe.

The cold weather has spurred a rise in heating demand, especially in regions that depend on natural gas and fuel oil for home and industrial heating.

The Energy Information Administration (EIA) reported a significant decline in distillate inventories last week, further underscoring the surge in consumption amid the ongoing cold weather.

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