Oil steadied, holding near a two-week high, as traders assessed whether fresh US sanctions on Russia’s biggest producers could counter a looming global surplus.

West Texas Intermediate ended the day little changed near $61 a barrel, up 7 per cent this week, after the the US blacklisted Russia’s Rosneft PJSC and Lukoil PJSC in an effort to cut off revenue Moscow needs for its ongoing war in Ukraine. Russian oil flows to major purchaser India are expected to plunge while Chinese state-owned companies have canceled some purchases.

Trend-following funds are also adding long positions, reinforcing the short squeeze in oil.

“Barring a downside shock, every scenario will result in large-scale algorithmic buying activity over the coming trading sessions,” said Dan Ghali, senior commodity strate

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