The US government took its most concrete action against Russian oil exports under the Trump administration this week. Days after proposed US-Russia talks in Hungary were unceremoniously cancelled, the US unveiled a raft of sanctions on 22 October targeting Lukoil and Rosneft, Russia’s two largest oil companies.
“These are tremendous sanctions and I hope they don’t last long,” President Donald Trump said shortly afterwards, “we hope that the war will be settled.” Oil markets had grown accustomed to Mr Trump speaking of potential future sanctions on Russia without following through and prices therefore jumped on the announcement. Having settled at $62.59/B on 22 October hours ahead of the sanctions announcement, Brent shot up to settle at $65.85/B the following day. (CONTINUED - 1004 WORDS)
