The United States tightened sanctions on Russia: The price of oil rose

Oil the price rose to a five-month high after the United States tightened sanctions on Russian energy supplies, news agency Bloomberg told on Monday.

Brent reference quality was traded at a price of almost 81 dollars per barrel.

The price already rose by almost four percent on Friday, when the United States announced new tightened sanctions on large oil transport exporters, insurance companies and more than 150 oil tankers.

Sanctions The blackmailing happened just two weeks before the next president of the United States Donald Trump begins his term of office.

In many cases, the new sanctions mean that the refineries of the two countries that buy a lot of crude oil from Russia, China and India, may have to look for substitute suppliers for crude oil.

India has become a major buyer of Russian crude oil since Russia’s war of aggression against Ukraine 2022 began.

China, on the other hand, is the world’s largest buyer of oil.

Oil the price has been on the rise at the beginning of the year.

The reasons for this have been, among other things, the coldness of the winter, the shrinking stocks in the United States and speculations that the United States can put pressure on other players to reduce oil purchases from Iran during Trump’s reign.

In 2023, Iran was the fourth largest oil exporting country in the world in the oil exporting organization OPEC.

Oil the price increase can also make it difficult for the central banks to act as they try to curb the price increase, i.e. inflation.

Inflation is typically tried to be controlled by raising interest rates. When inflation is sufficiently low, interest rates can be lowered.

In turn, it usually raises share prices, because the relative yield of interest-bearing securities in relation to shares weakens.

Recently, however, investors’ hopes for possible interest rate cuts by the US Central Bank (Fed) have decreased as the US economy has been running so hot.