WTI falls to near $61.00, downside appears limited due supply concerns

• WTI slipped but remains on course for a weekly gain, trading near its two-week high.

• The United States has blacklisted Russian Oil giants Rosneft and Lukoil.

• Chinese Oil firms halt Russian seaborne imports; Indian refiners plan major cuts to meet new restrictions.

West Texas Intermediate (WTI) Oil price depreciates after three days of gains, trading around $61.00 per barrel during the Asian hours on Friday. However, crude Oil prices remain on track for a weekly gain and hover around two-week highs amid increased supply concerns, driven by the fresh United States (US) sanctions on Russia's two biggest Oil companies.

The United States has blacklisted state-run Oil giants Rosneft and Lukoil in an effort to pressure Russian President Vladimir Putin over the war in Ukraine. Together, the two companies account for nearly half of Russia’s Oil exports and over 5% of global Oil production, making them crucial to financing the Kremlin’s budget.

Reuters reported that Chinese state-owned Oil companies have temporarily suspended seaborne purchases of Russian Oil, while Indian refiners plan significant import cuts to comply with the new measures. Meanwhile, the European Union (EU) has imposed additional sanctions targeting Russia’s energy infrastructure, as Ukrainian forces continue strikes on refineries, pipelines, and export terminals. Kyiv claimed it struck a Rosneft refinery on Thursday.

The US said it was prepared to take additional measures, while President Putin dismissed the sanctions as an unfriendly gesture, claiming they would have little impact on Russia’s economy and emphasizing the country’s importance in the global market. Meanwhile, Kuwait’s Oil minister noted that Organization of the Petroleum Exporting Countries (OPEC) is prepared to counter any potential market shortages by reversing its production cuts.