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Oil prices rise about 4% after US announcement of new sanctions on Russia
Oil prices rose for the second consecutive day during trading on Wednesday, October 22, at the settlement, increasing to about 4% after the settlement, due to statements by the US Treasury Secretary.
Brent crude futures rose $2.25, or 3.67%, to $63.57 a barrel in the latest post-settlement trading.
US crude futures also rose $2.31, or 4.04%, to $59.55 a barrel in the latest post-settlement trading.
US Treasury Secretary Scott Besant said on Wednesday that the US would announce new sanctions on Russia today or tomorrow.
This comes after data released by the US Energy Information Administration on Wednesday revealed a decline in US crude oil and fuel inventories last week amid increased refining activity and demand.
EIA data showed that US crude oil inventories fell by 961,000 barrels to 422.8 million barrels during the week ending October 17, confounding analysts' expectations in a Reuters poll for a 1.2 million-barrel increase.
"This is very impressive for a pre-peak season. It shows the strength of oil demand, and the supply figures don't indicate that much oil, at least here in the United States," said Phil Flynn, senior analyst at Price Futures Group.
US President Donald Trump said on Monday that he expects to reach a fair trade agreement with Chinese President Xi Jinping, whom he was scheduled to meet in Seoul next week. However, the US president increased uncertainty surrounding the meeting, saying on Tuesday that it might not take place.
