Oil prices rose 5% on Thursday after the US imposed sanctions on major Russian suppliers Rosneft and Lukoil over the Ukraine war, extending gains from the previous session.

Brent crude futures were up $3.39, or 5.4%, at $65.98 a barrel at 1018 GMT, while US West Texas Intermediate crude futures were up $3.31, or 5.7%, at $61.81.

The US 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, according to Saxo Bank analyst Ole Hansen.

The US said it was prepared to take further action as it called on Moscow to agree immediately to a ceasefire in Ukraine.

Britain sanctioned Rosneft and Lukoil last week. EU countries have approved a 19th package of sanctions against Russia that in

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