Oil prices extend gains; Brent exceeds $81

Oil drilling rigs

Oil prices extended gains today, Jan. 13, as investors assessed a new round of US sanctions on Russia's oil sector sparking fears of supply shortages in the markets.

Brent crude futures for March delivery rose 1.55%, or $1.25, to close at $81.01 a barrel. WTI crude futures for February delivery rose 2.95%, or $2.25, to $78.82 a barrel.

The uncertainty over the impact of these sanctions is proving to be positive for the oil market, Warren Patterson, Head of Commodity Strategy at ING, said in a note, adding that about 700,000 barrels per day of crude supply is at risk.

Goldman Sachs analysts said in a note that increased Russian refinery operations and higher refined product exports could help mitigate the impact of sanctions, and, therefore, the bank kept its forecasts for Russian production and Brent crude prices unchanged this year at 10.6 million barrels per day and $76, respectively.