US Weighs Russia Oil Sanctions Amid US, Putin Talks

Bob McNally, former White House energy advisor to George W. Bush, discusses the potential impact secondary sanctions on Russian oil could have on the wider oil market and breaks down why US energy production is more 'chill, baby, chill' than 'drill, baby, drill' these days.

President Donald Trump highlighted “great progress made” in a meeting between his envoy and Russian President Vladimir Putin, while still leaving open the possibility of further penalties on Moscow’s oil revenues.

Earlier Wednesday, Trump doubled tariffs on Indian goods to 50% as punishment for its purchases of Russian energy. US officials are weighing additional actions to choke off energy sales that are a key source of funds for Russia’s war effort in Ukraine.

The Trump administration is considering new sanctions on Moscow’s covert fleet of oil tankers and several entities that enable them to operate, according to people familiar with the matter.

Trump said on social media that Putin’s meeting with US envoy Steve Witkoff at the Kremlin earlier on Wednesday was “highly productive” with “great progress made.”

“Afterwards, I updated some of our European Allies,” Trump said in the post. “Everyone agrees this War must come to a close, and we will work towards that in the days and weeks to come.”

Still, a White House official said the US expected to implement secondary sanctions on Friday even as they expressed satisfaction with the outcome of the Witkoff-Putin meeting.

Still, a White House official said the US expected to implement secondary sanctions on Friday even as they expressed satisfaction with the outcome of the Witkoff-Putin meeting.

Putin’s government said little about the three-hour conversation, with Kremlin foreign policy aide Yuri Ushakov telling reporters the Russian leader exchanged “signals” with Trump on Ukraine, without elaborating.

Oil fell for the fifth straight session as traders waited to see whether US President Donald Trump would impose more severe measures to restrict Russian energy flows.

West Texas Intermediate dipped 1.2% to settle just above $64 a barrel, notching the longest daily losing streak since September, as traders positioned for the possibility of a softer stance on Russia than the White House previously telegraphed.

Futures dipped further after reports that Trump plans to meet Putin in person as soon as next week.

The Russian vessels have become instrumental to its ability to move its oil despite US and European sanctions.

“The shadow tanker fleet is the backbone of Russia’s sanctions evasion and war financing,” Andriy Yermak, Ukrainian President Volodymyr Zelenskiy’s chief of staff, said on the X platform.

The Financial Times first reported the potential measures on Russia’s shadow fleet.

The people said the Trump administration is considering a range of options to restrict Putin’s energy revenues. Other possibilities could include measures targeting oil companies and actions to better enforce existing restrictions.

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