Brent crude oil futures rose in early Asian trading today as the United States called for stronger enforcement of sanctions against Russia.

As of 12:50 Beijing time, the September contract price of Brent crude oil futures was $82.54 per barrel, up 17 cents from the settlement price on July 25, while the contract rose 66 cents at the close on July 25.

The September contract price for WTI crude oil futures was $78.45 per barrel, up 17 cents from the settlement price on July 25, while the contract rose 69 cents at the close on July 25.

Secretary Yellen requested stricter sanctions against Russia's oil exports. G7 countries set a price cap of $60 per barrel for Russian maritime crude oil exports involving Western shipping, trading and insurance companies. However, Russia has successfully circumvented the price cap by bypassing Western intermediaries. So far this year, the average price of Russian Urals crude oil shipped from Baltic ports is about $67 per barrel.

While Secretary Yellen did not announce any specific actions, she noted that the United States is considering possible sanctions against the oil tanker fleet of Sovcomflot, Russia's modern merchant shipping company. So far, the United States has imposed sanctions on 20 of the 120 tankers owned by Sovcomflot, and US sanctions experts are calling for a further expansion of the scope of sanctions. The UK and 44 European countries and the EU have announced plans to crack down on the 'shadow fleet' used by Russia to circumvent international sanctions.

The Slovak Ministry of Economy warns that if Ukraine continues to ban the transportation of Russian crude oil through the Druzhba pipeline, Slovakia's oil product exports to the Czech Republic and Ukraine may be affected. At the end of June, Kiev extended its sanctions against Lukoil, Russia's Lukoil oil company, and banned the company from transporting crude oil through the Druzhba pipeline system in Ukraine. This move has raised concerns in Slovakia and Hungary, as the Russian company meets about 45% of Slovakia's crude oil needs and about 33% of Hungary's needs.

Valero Energy, an American energy company, warned that its refineries on the West Coast of the United States may face closure due to rising costs. Lane Riggs, CEO of Valero, said on a conference call that the West Coast is the highest cost operating area, and if costs rise, refineries there may close.

Valero operates two West Coast refineries in California: Benicia refinery, which produces 145,000 barrels of oil per day, and Wilmington refinery, which produces 85,000 barrels of oil per day.

According to data from the California Energy Commission, 29 refineries in California have closed or merged with other refineries since the 1980s. Some other refineries have been converted to renewable fuel production.

(The above content is from Argus, an independent international energy and commodity price assessment agency)