08:57 AM EST, 01/10/2025 (MT Newswires) -- Oil prices surged to a three-month high early on Friday following reports the outgoing Biden Administration is readying additional sanctions on Russia's oil exports.

West Texas Intermediate crude for February delivery was last seen up US$2.95 to US$76.87 per barrel, the highest since Oct.7, while March Brent crude was up US$2.87 to US$79.79.

Reuters on Friday reported the United States plans to sanction 180 tankers, oil traders, two oil companies and oil executives, according to a document it said it is circulating among traders in Asia and Europe, though the news agency said it "could not verify the veracity of the document".

The additional sanctions, if they are imposed, could further tighten the call on supply that is already squeezed by OPEC+ production cuts and high demand amid cold winter temperatures. They also follow on this week's decision by a major Chinese port operator to ban sanctioned tankers from Russia and Iran.

"The cold spell in the US and Europe could disrupt supply if refiners are affected and demand for heating oil is naturally rising. Stock draws in distillates in the coming weeks cannot be ruled out. Sanction-related declines in Iranian and Russian crude oil exports force China to seek suitable alternatives," PVM Oil Associates noted.