West Texas Intermediate (WTI), the US crude benchmark, was trading around $77.25 on Tuesday (14/1). WTI prices rose to their highest since Oct. 8 as US sanctions on Russian oil threatened to tighten global supplies.

The US administration of President Joe Biden has imposed new sanctions on Russian oil giants Gazprom and Surgutneftegaz, as well as 183 oil tankers, often referred to as Russia's ‘Shadow Fleet'. Growing concerns over supply disruptions could support the black gold in the near term.

"Supply is the key near-term driver, with Biden's new sanctions on Russia's two major oil producers and Russian tankers further complicating the logistical challenges Russia now faces," said Chris Weston, Head of Research at Pepperstone.

China's exports and imports in December both beat expectations by wide margins, China's National Bureau of Statistics said on Monday. Additionally, China's Trade Surplus hit a new record high of $990 billion. Upbeat Chinese economic data could support WTI prices, as China is the world's second-largest oil and gas consumer.

On the other hand, an upbeat US jobs report for December reinforced expectations that the US Federal Reserve (Fed) may not cut interest rates aggressively this year. A stronger greenback could dampen energy demand by making USD-priced commodities like oil more expensive for buyers using other currencies. (AL)

Source: Fxstreet