Oil Dips on Larger US Crude Draw, Russia Sanctions

Oil prices fell back slightly on Thursday, a day after settling at multi-month highs on U.S. President Joe Biden's latest sanctions targeting Russia and a larger than forecast fall in U.S. crude stocks.

Brent crude futures were down 12 cents, or 0.15%, to $81.91 per barrel at 1415 GMT, after rising 2.6% in the previous session to their highest since July 26.

U.S. West Texas Intermediate crude futures were down 18 cents, or 0.22%, to $79.86 a barrel, after gaining 3.3% on Wednesday to their highest since July 19.

The Biden administration on Wednesday imposed hundreds of sanctions targeting Russia's military industrial base and evasion schemes, after earlier levying broader sanctions on Russian oil producers and tankers. Moscow's top customers are now scouring the globe for replacement barrels, while shipping rates have surged too.

With Donald Trump being sworn in for his second term on Monday, "the market is approaching the 'wait-and-see' phase and awaits the reaction from the incoming U.S. administration on the issue" of sanctions, said Tamas Varga at oil broker PVM.

Pricier oil may also lead to clashes between Trump and the Organization of the Petroleum Exporting Countries (OPEC), if the incoming president follows his previous playbook.

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