President Trump’s move to initiate sanctions on Russian oil in a bid to end the war in Ukraine sent crude oil prices surging 5% on Thursday. Meanwhile, natural gas prices fell nearly the same amount in the day’s trading.
Oklahoma energy stocks soared in the day’s trading with several firms recording 4%, 5%, 7% and even one firm with a 9% gain.
Crude oil shot up more than $3 a barrel and reached a two-week high following the announcement of US imposed sanctions on major Russian suppliers Rosneft and Lukoil. At the same time, the move prompted energy firms in China and India to consider also cutting imports from Russia.
Brent futures rose $3.40, or 5.4%, to settle at $65.99 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $3.29, or 5.6%, to settle at $61.79 on the New York Mercantile Exchange.
It was the first time in weeks that the WTI settled more than $60 and the jump wsa the biggest daily percentage gains for WTI and Brent since mid-June.
Reuters reported that addition to soaring crude prices, U.S. diesel futures jumped almost 7%, boosting the diesel crack spread to its highest since February 2024. Crack spreads measure refining profit margins.
The U.S. sanctions mean refineries in China and India, major buyers of Russian oil, will need to seek alternative suppliers to avoid exclusion from the Western banking system, said Saxo Bank analyst Ole Hansen.
Natural gas prices went to opposite direction, falling nearly 4% for the day. Prices settled at $3.316 after a decline of $0.134 or 3.88%.
What a day for several Oklahoma energy stocks. Helmerich & Payne soared more than 9% while LSB Industries followed closely with a 7% jump. Others were Stardust Power at nearly 6%, SandRidge Energy at about 5% and Vital Energy at close to 7%.
One big loss for the day was close to 6% by Williams Cos.
Alliance Resource Partners LP
