WASHINGTON (dpa-AFX) - Oil prices rose sharply to hit a five-month high on Monday amid potential supply risks after the U.S. imposed sweeping sanctions on Russia's oil exports.
A survey by Reuters says crude inventories likely fell by about 3.5 billion barrels in the week to January 10.
The dollar continues to climb higher, with last week's upbeat non-farm payroll data reducing the prospects of an interest rate cut by the Federal Reserve this month. The central bank is now widely expected to go slow on interest rate cuts.
West Texas Intermediate Crude oil futures for February closed up $2.25 or nearly 3% at $78.82 a barrel.
Brent crude futures were up $1.21 or about 1.52% at $80.97 a barrel a little while ago.
The Biden administration last week imposed new sanctions on Russian oil producers Gazprom Neft and Surutneftegas, and their subsidiaries. Sanctions have been imposed on more than 180 vessels, and several oil traders, insurance companies and energy officials.
Analysts are of the view that major oil producers from the U.S., Middle East and Africa will hike oil prices as major oil consumers India and China, who were major buyers of Russian oil, will look to buy oil from them following the ban on Russian oil companies.
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