JAKARTA. Global oil price hit its peak within the past 4 months last Monday (13/1), following the sanction given by the United States (US) to Russia.

The sanction forces India and China to seek other suppliers but Russia. For the record, India and China are two of the most prominent buyers of global oil supply.

According to the data compiled by IDNFinancials, Brent crude oil futures’ price was seen increasing by 1.6% or USD 1.25 to USD 81.01 per barrel. Meanwhile, West Texas Intermediate (WTI) oil price saw 2.9% or USD 2.25 jump to USD 78.82 per barrel.

Within the past 4 months, Brent and WTI have surged over 6%. The increase also prompts the spread of these futures contracts to boost even further in the past month.

The sanction given by the US to Russia also directly affected energy companies such as Gaxprom Neft and Surgutneftegas, as well as hundreds of Russian oil tanker. The sanction is aimed to limit Russia’s state income, which have been used to fund its invasion to Ukraine.

Several analysts predict that this sanction will drive India and China to purchase oil from Middle-East, Africa, and America. This action is believed to keep the oil price at higher level in a shorter period, according to Goldman Sachs, bringing the estimated price to between USD 70 and USD 85 per barrel. (KR/ZH)