Oil prices rose sharply on Thursday after President Trump announced sanctions on two large Russian oil companies as his frustration with President Vladimir V. Putin over the war in Ukraine mounted.
Brent crude, the international benchmark, rose about 5.4 percent to almost $66 a barrel. European natural gas prices also rose more than 3 percent as the European Union approved its own package of sanctions on Russia, which include a ban on imports of Russian liquefied natural gas from 2027.
Richard Bronze, head of geopolitics at Energy Aspects, a research firm, said Mr. Trump’s actions would have both a symbolic and a real impact on a market that has become accustomed to the Trump administration avoiding moves against Russia.
“Just the decision to make this announcement is going to send quite a shock wave through the market,” Mr. Bronze said. “It feels like the president has finally reached the point where he recognizes that Putin is not going to make concessions or engage in meaningful diplomacy without facing significant pressure first.”
Although Russia’s natural gas flows have been crimped, Moscow has been able to maintain oil exports through sales, often at discounted prices, to countries like India and China. The question, analysts say, is whether Mr. Trump has the appetite to squeeze Russia further.
Mr. Bronze said Mr. Trump’s moves, coupled with actions by Britain and the European Union, would probably “have quite a significant impact, particularly on Russian flows to India.”
Mr. Bronze said that Reliance Industries, India’s top oil refiner, had a large contract for Russian crude, and it and other Indian buyers would “likely all pause purchases until they get a stronger sense of how these sanctions will be enforced.”
India is the second-largest buyer of Russian crude, taking 1.6 million to 1.8 million barrels a day. Mr. Bronze also said China, Russia’s largest customer, and Turkey, the third largest, might also slow their purchases in the coming weeks. These pauses could lead to more oil being stuck on tankers.
Mr. Trump’s actions threaten to restrict one of the world’s main sources of crude supplies. Russia exports around 4.5 million barrels a day, Mr. Bronze estimated.
The two companies that are the focus of the U.S. sanctions, Rosneft and Lukoil, are Russia’s largest oil producers. They have taken an increased role in exports after two other oil companies, Gazprom Neft and Surgutneftegaz, were sanctioned in January by the Biden administration.
The sanctions are likely to ripple through the market as buyers of Russian crude shop for alternatives. Mr. Bronze said that prices for Brent crude could approach $70 a barrel.
Oil prices have recently come under pressure because of worries that supply may greatly exceed demand in the coming months. A group of eight producing countries that belong to the OPEC Plus cartel have been adding oil to the market, compounding the concerns.
There is uncertainty, however, over how much surplus crude could come onto the market. With OPEC Plus having increased production, there is now relatively little spare capacity or extra oil that can be easily produced.
Since Russia’s invasion of Ukraine in 2022, there have been extensive efforts by the United States and Europe to reduce Moscow’s revenue from sales of oil and natural gas that are considered crucial to sustaining its war effort.
Stanley Reed reports on energy, the environment and the Middle East for The Times from London. He has been a journalist for more than four decades.
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