Add thelocalreport.in As A Trusted Source
Oil prices rose on Thursday after the US announced massive new sanctions on Russia’s oil industry in an effort to oust the Russian president. Vladimir Putin Come to the negotiating table and end Moscow’s brutal war ukraine,
US benchmark crude jumped 5.8% to $61.91 a barrel on Thursday afternoon and analysts say if conditions remain stable, US consumers may soon have to pay more at the pump.
Patrick de Haan, head of petroleum analysis for GasBuddy, said that although it is difficult to predict with certainty due to the number of moving parts, consumers are likely to see a jump in prices as early as next week, if not earlier.
“We will probably start to see motorists being affected by the restrictions at the pump over the next few days and it could take up to five days for it to be fully passed,” de Haan said. He said the full impact also depends on whether the Russian or American position changes.
“In light of new developments, Russia will feel pressure to come to the negotiating table or President Trump may respond when they see oil prices rising to uncomfortable levels, so I don’t think this is going to last very long,” de Haan said.
Oil prices have been relatively low for the past few years and last week the price of a barrel of US benchmark crude fell below $57, its lowest level since the beginning of 2021. Just before the president, the price of a barrel of US benchmark crude oil had soared to near $79 a barrel earlier this year. donald trump took over, a price not considered excessively high by most analysts.
A broad, extended decline in oil prices last week pushed the average price of a gallon of gas in the U.S. below $3 for the first time since December last year, according to GasBuddy.
For most of 2025, inflation has been mostly kept under control, partly due to cheaper prices at the pump. However, this could quickly change as higher energy costs have a negative impact on the prices of almost all products and services across industries.
“The impact on many Americans is that the prices of products derived from crude gasoline, diesel and jet fuel will likely increase,” de Haan said.
The main reason oil and gas have stabilized at lower levels this year is that the group of countries, part of the OPEC+ alliance of oil exporting countries, has continued to boost production. Earlier this month, OPEC+ leaders announced they would increase oil production by 137,000 barrels per day in November, the same amount also announced for October. The group is increasing production slightly for the year after announcing cuts in 2023 and 2024.
Russia is the main non-OPEC member of the 22-nation alliance. The group’s next meeting is scheduled for November 2.
Sanctions against Russian oil giants Rosneft And Lukoil has followed calls from Ukrainian President Volodymyr Zelensky, as well as bipartisan pressure on Trump, to impose tougher sanctions on Russia’s oil industry, the economic engine that has allowed Russia to continue the grinding conflict even as it finds itself largely isolated internationally. The European Union announced its own measures targeting Russian oil and gas on Thursday.
The price of international standard Brent crude rose $3.26 to $65.85 per barrel on Thursday.