“Trump’s path to tightening the screws on Russia opened by oil surplus on the market – FTUS President Donald Trump this week imposed sanctions on Rosneft and Lukoil, using the surplus of oil on the global market to weaken Russia’s war chest. This move was made possible by a significant drop in global oil prices, which allowed Washington to more aggressively target Russian oil.
”, — write: unn.ua
DetailsThe US Treasury Department sharply changed US policy when it added Rosneft and Lukoil to its sanctions blacklist on Wednesday, seeking to weaken Kremlin leader Vladimir Putin’s war chest and force Russia to negotiate an end to Russia’s war against Ukraine.
“At the heart of this move was a significant drop in global oil prices, which gave Washington more room to target Russian oil,” the publication says.
Oil prices rose by 3% after US sanctions against Rosneft and Lukoil23.10.25, 08:39 • 3292 views
Trump and former US President Joe Biden, as stated, were reluctant to impose direct sanctions on Moscow’s oil groups and risked raising energy prices.
But the world, the publication notes, is no longer short of oil. The International Energy Agency forecasts a growing oil supply surplus of 3.2 million barrels per day from this month to June 2026. It previously estimated a surplus of 2 million barrels per day, which will be enough for a long period next year.
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Jason Bordoff, founding director of Columbia University’s Center on Global Energy Policy, said: “A market with large and growing inventories and supply makes it much easier for the US to tighten the screws on Russia than what the Biden administration faced.”
This week, before the sanctions were announced, the price of Brent crude reached a five-month low of just over $60, which is about $20 below the average price during Biden’s four years in office.
“If the price of oil was $80 today, I don’t think Trump would have made this move,” said Scott Sheffield, a veteran of the oil industry who ran shale oil producer Pioneer Natural Resources.
“Trump had a choice between supplying Ukraine with ‘Tomahawk’ or imposing additional sanctions on Russia, and he chose sanctions because it’s a much less risky option,” he said.
Imposing sanctions against Rosneft and Lukoil: expert explained how it will affect the global oil market23.10.25, 17:19 • 29830 views
US national gasoline prices – a crucial measure of success for the inflation-focused Trump administration – fell to a near four-year low of just under $3 a gallon on Sunday, according to data provider GasBuddy.
The US Treasury Department’s measures have set the stage for the White House to impose punitive secondary sanctions against Chinese and Indian banks, restricting their access to the dollar and forcing them to sever ties with Russian companies, the publication writes.
Jeremy Paner, a sanctions expert at the law firm Hughes Hubbard and a former official at the country’s Office of Foreign Assets Control, said: “This is a necessary first step that will allow OFAC to threaten Indian and Chinese banks that are moving Russian oil money, because it allows for the imposition of the kinds of sanctions that actually concern these banks the most.”
Chinese oil giants halt Russian oil purchases after US sanctions – Reuters23.10.25, 17:02 • 2112 views
Under Biden, Washington sought to balance support for Ukraine with efforts to curb rising prices, with US gasoline prices reaching record highs of over $5 a gallon in 2022 after the outbreak of the war.
Amos Hochstein, who led Biden’s energy diplomacy efforts, warned that abandoning this policy could lead to rising oil prices and have unpredictable consequences for the US and its allies.
“If the price goes up significantly, then any losses Russia incurs from sanctions they will get back through the increased price. And if the price goes up too much, then the Russians win, and the American consumer and our allies lose,” said Hochstein, who is now a managing partner at the investment firm TWG Global.
Although Trump initially pursued a similar approach, growing frustration with Putin after recent fruitless efforts to end the war prompted the administration to change course, the publication notes.
Let’s see how things turn out in six months: Trump reacted to Putin’s statement about Russia’s ‘immunity’ to US sanctions24.10.25, 00:06 • 3172 views
Fred Fleitz, vice chairman of the American Security Program at the America First Policy Institute, said: “As long as Putin seemed willing to talk, and Trump considered it productive, he was willing to give those talks a chance.”
“But I also think Trump has shown that he really has a limit to how long he will allow such negotiations to go on,” said Fleitz, who is close to the administration.
Oil experts said that the close relationship between Trump and Saudi Arabian leader Mohammed bin Salman, who will visit Washington next month, helped create the conditions for tougher US action.
Kuwait says OPEC countries are ready to increase production if necessary23.10.25, 23:00 • 3420 views
The OPEC+ oil cartel began increasing production in April, a surprise move that led to a sharp drop in oil prices. This came after Trump’s calls for OPEC+ to increase supply to cool prices, ease inflation, and cut Russia’s energy revenues.
Kevin Book, head of research at ClearView Energy Partners, said: “What’s important about this move by Washington is the coordinated nature of the sanctions with European allies. The UK has already imposed sanctions on these companies, and this looks like close cooperation.”