Oil prices hit over 4-month high as Brent surpasses $81

Oil drilling rigs

Oil prices rose on Monday, extending their gains for the third consecutive session after the US imposed broader sanctions on Russia's oil sector. The sanctions are expected to disrupt Russian crude exports to major buyers, including China and India.

Brent crude futures for March delivery rose 1.96%, or $1.56, to $81.32 per barrel by 9:27 am Makkah time, reaching their highest level since August 26, 2024.

Meanwhile, US West Texas Intermediate (WTI) crude for February delivery gained 2.10%, or $1.59, to $78.16 per barrel.

Since Jan. 8, both contracts have surged more than 6%, with the majority of gains following the latest US sanctions on Russia's oil sector, viewed as the harshest since the start of the Ukraine war.

The sanctions targeted oil producers Gazprom Neft and Surgutneftegas, which account for over a quarter of Russia's seaborne crude exports, as well as 183 tankers.

The measures are expected to prompt China and India—the world’s top and third-largest oil importers, respectively—to seek alternative supplies. This shift may lead them to import oil from the Middle East, Africa, and the Americas.