Oil Stabilizes, Expectations That The U.S Will Not Target Russian Oil Exports

Oil prices stabilized on Wednesday, below their highest levels since 2014, as US officials indicated that an escalation between Russia and Ukraine is unlikely to lead to sanctions on energy supplies from Russia, one of the world’s largest oil producers.

Brent crude remained unchanged, reaching $96.84 a barrel, after hitting $99.50 on Tuesday, its highest level since September 2014.

US West Texas Intermediate crude futures rose 19 cents to $92.10 a barrel. It had reached $96 in the previous session.

Oil prices rose on Tuesday amid concerns that sanctions imposed by Western countries on Russia, after it sent troops into two breakaway regions in eastern Ukraine, could harm energy supplies.

Sanctions imposed by the United States, the European Union, Britain, Australia, Canada and Japan have focused on banks and members of the Russian elite, while Germany has suspended certification of a gas pipeline from Russia.

But the United States has made clear that agreed sanctions and those that may be imposed will not target oil and gas flows.

US administration officials told Reuters that the administration is not expected to target Russia’s crude oil and refined fuel sector with sanctions due to concerns about inflation and the damage it could do to European allies, global oil markets and US consumers.

Moscow denies planning the invasion, describing the warnings as anti-Russian hysteria. But it did not take any steps to withdraw the troops deployed on the Ukrainian border.