WTI gained 1.4% to top $73, adding to Monday’s 1.9% jump. Millions of Russian barrels are stranded as blacklisted tankers halt shipments to China.Russia’s output fell below its OPEC+ quota, sources said. Chinese refiners get bigger discounts on Russian crude, while Middle Eastern crude premiums rise.
Commerzbank analysts, including Carsten Fritsch, noted that the impact of tighter sanctions on Russia and Iran may be underestimated. Combined with a sharp drop in bullish bets, this could drive oil prices higher in the coming weeks.Oil started the year on a volatile note, initially rising due to cold weather and US sanctions on Russia’s crude industry.
However, gains were offset by concerns that President Trump’s expanding tariffs could slow major economies and weaken oil demand. A renewed focus on sanctions has since fueled this week’s rally.
Trump warned Israel to abandon its ceasefire with Hamas if hostages aren’t returned by the weekend, raising the risk of further conflict. Both sides have accused each other of breaking the agreement.
