Thursday, 26 May 2022
WorldOil prices rise following the announcement of a European embargo plan on...

Oil prices rise following the announcement of a European embargo plan on Russian crude

AA / Istanbul

Crude oil prices rose in Wednesday’s trading, gaining around $4 in evening trading, after the European Commission announced a gradual embargo on Russian oil imports. .

As of 11:45 GMT, prices for Brent crude futures, for delivery in July, traded at $108.78 a barrel, up 3.63% to $3.81.

U.S. West Texas Intermediate (WTI) crude futures, for June delivery, rose 3.83%, or $3.92, to $106.33 a barrel.

Earlier in the day on Wednesday, European Commission President Ursula von der Leyen said the commission had handed over to member states (27 countries) overnight Tuesday-Wednesday a proposal to ban imports of Russian crude, by sea and by pipeline, within 6 months, refined products, for their part, should be prohibited towards the end of 2022.

This proposal is part of a sixth series of sanctions, imposed against Moscow, following the war it is waging in Ukraine, since February 24.

Russia provides about 30% of European imports of crude oil and 15% of refined products. It will also supply around 45% of EU natural gas imports.

The governments of the 27 member states of the European Union are expected to unanimously approve the proposal before it becomes effective.

The momentum in oil prices was also supported by the release of preliminary data from the American Petroleum Institute (API) showing a drop in crude reserves of around 3.5 million barrels last week. against forecasts of a drop of less than a million barrels, which indicates a shortage of supplies in the largest oil-consuming country in the world, the United States.

Official figures on the state of oil reserves in the United States are expected later in the day on Wednesday.

Market concerns over insufficient supplies due to war in Ukraine and Western sanctions on Moscow outweigh fears over lower demand due to expanding lockdowns in second-largest China oil consumer across the globe, who is currently going through an increase in coronavirus infections.

* Translated from Arabic by Mounir Bennour.

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