Oil Rebounds from 16-Week Lows on Hopes of Tougher Russian Sanctions

Oil prices climbed on Thursday (Oct 2), bouncing back from their lowest level in over four months, as expectations grew that the West may impose tighter sanctions on Russian crude exports, raising concerns over global supply and supporting a rebound in the energy markets.

Brent crude futures rose toward $77 per barrel, while WTI crude recovered near $73 per barrel, after both benchmarks had fallen for three consecutive sessions earlier this week.

The rally was fueled by reports that the U.S. and its European allies are considering fresh measures to curb Russia’s oil revenues amid the ongoing war in Ukraine. On the supply side, markets are closely watching the upcoming OPEC+ meeting next month, with speculation that the group could boost production by as much as 500,000 barrels per day — a move that could cap price gains.

Meanwhile, U.S. government data showed crude inventories rose more than expected last week, signaling weaker fuel demand and posing a potential headwind for oil prices in the near term.