Oil prices jumped more than 4% on Friday, with global benchmark Brent breaking $80 per barrel for the first time since October on fears that tougher U.S. sanctions on Russia will disrupt crude supplies.
Brent gained $3.14, or 4.08%, to $80.06 per barrel by 9:44 a.m. ET, while U.S. crude oil advanced $3.21, or 4.34%, to $77.13 per barrel.
The move came amid speculation that U.S. will impose some of the toughest sanctions to date on Russia’s oil industry. Reuters reported Friday that the sanctions would target 180 vessels, two major oil companies, and top Russian oil executives. The report cited an alleged U.S. Treasury document circulating among traders in Asia and Europe.
“Perceptions are that Indian and Chinese refiners will be forced to scramble for Middle East barrels,” Bob Yawger, executive director of energy futures at Mizuho Securities, told clients in a note.
This is a developing story. Please check back for updates.