The spot premium for the Middle Eastern oil benchmark Dubai crude jumped on Thursday after the United States sanctioned top Russian oil producers, trade sources said.
U.S. hit major suppliers Rosneft and Lukoil with sanctions over the Ukraine war, sparking concerns over tighter supply of Russian oil, a major source for refiners in India and China.
The Dubai benchmark settled around $2.70 per barrel, more than doubling from $1.26 per barrel in the previous session, they said.
Rosneft and Lukoil were also sanctioned by Britain last week.
Indian refiners and some Chinese companies are set to curtail imports of Russian oil to comply with new U.S. sanctions, sources said.
That would also drive up demand for alternatives, mainly oil from the Middle East.
Global oil benchmark Brent futures rose by more than 4% on Thursday.
(Reporting by Florence Tan and Siyi Liu in Singapore; Editing by Susan Fenton)