LONDON: Oil prices rose 5 per cent on Thursday after the US imposed sanctions on major Russian suppliers Rosneft and Lukoil over the Ukraine war, extending gains from the previous session.
Read more: US sanctions Russian oil giants as Moscow conducts nuclear drills
Brent crude futures LCOc1 were up $3.39, or 5.4 per cent, at $65.98 a barrel at 1018 GMT, while US West Texas Intermediate crude futures CLc1 were up $3.31, or 5.7 per cent, at $61.81.
The US sanctions mean refineries in China and India, major buyers of Russian oil, will need to seek alternative suppliers to avoid exclusion from the Western banking system, according to Saxo Bank analyst Ole Hansen.
The US said it was prepared to take further action as it called on Moscow to agree immediately to a ceasefire in Ukraine.
Britain sanctioned Rosneft and Lukoil last week. EU countries have approved a 19th package of sanctions against Russia that includes a ban on imports of Russian LNG.
