Oil Prices up Amid Trump’s Sanctions Threat on Russia

By Adedapo Adesanya

Oil prices gained on Friday after the United States President, Mr Donald Trump, threatened sanctions on Russia if it fails to reach a cease-fire with Ukraine.

The price of Brent crude went up by 90 cents or 1.3 per cent to $70.36 a barrel and the US West Texas Intermediate (WTI) crude appreciated by 68 cents or $1.02 to $67.04 per barrel.

President Trump said on Friday he is strongly considering imposing sweeping sanctions, including ones on banking, and tariffs on Russia until a ceasefire and peace agreement is reached with Ukraine.

The American leader had paused military aid and intelligence sharing with Ukraine to pressure it to accept a ceasefire deal after an explosive Oval Office meeting with Ukrainian President Volodymyr Zelenskiy a week ago.

This development comes after reports that the Trump administration is drawing up plans to potentially give Russia sanctions relief as part of its push to end the war and improve diplomatic and economic relations.

Russia, one of the world’s biggest oil producers, is already subject to over 20,000 sanctions imposed by the United States and partners after its invasion of Ukraine in February 2022.

Some of the plans include ways to ease sanctions on Russia’s energy sector, a move that could add more barrels to the market.

Russia’s Deputy Prime Minister Alexander Novak told reporters that the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) group would go ahead with its April increase but may then consider other steps, including reducing production.

OPEC+ had said it intended to proceed with a planned April output increase, adding 138,000 barrels per day to the market.

In other supply news, the US aims to reduce Iranian crude exports to a trickle with Trump’s administration considering a plan to inspect Iranian oil tankers at sea.

The market calmed after President Trump suspended the 25 per cent tariffs he had imposed on most goods from Canada and Mexico until April 2, though steel and aluminum tariffs would still take effect on March 12.

Also in the US, job growth picked up in February and the unemployment rate edged up to 4.1 per cent. This has led to uncertainty and brings into focus what the Federal Reserves will do.