Crude oil futures settled sharply higher on Friday as U.S. imposed sweeping sanctions against Russia oil industry. Treasury Secretary Janet Yellen said that the United States is taking sweeping action against Russia's key source of revenue for funding its brutal and illegal war against Ukraine. According to reports, the sanctions measures by the U.S. will likely target 180 vessels and several key Russian oil firms, causing disruptions to its major buyers India and China. Sanctions are likely on major oil companies Gazprom Neft and Surgutneftegaz, and some major ship insurance providers as well as energy officials and top executives. Besides, optimism about increased fuel demand from icy conditions in the U.S. and Europe too contributed to the surge in oil prices.
Benchmark crude oil futures for February rose $2.65 or about 3.6 percent to settle at $76.57 a barrel on the New York Mercantile Exchange. Brent crude for March delivery surged $2.84 or about 3.7 percent to settle at $79.76 a barrel on London's Intercontinental Exchange.