EU leaders agreed in principle to cut 90% of oil imports from Russia by the end of 2022
Oil prices rose on Tuesday after the European Union agreed to reduce oil imports from Russia, raising concerns about an already tense market for supply amid rising demand ahead of the US and European summer driving season .
Brent crude for July, which expires on Tuesday, rose $1.13 to a two-month high at $122.80 a barrel by 0359 GMT. The more active August contract rose by $1.34 to $118.94.
US West Texas Intermediate (WTI) crude futures were trading higher by $3.18 at $118.25 a barrel from Friday’s closing price. There was no agreement on Monday because of a US public holiday.
Both the benchmarks have posted daily gains since Wednesday.
EU leaders agreed in principle to cut 90% of oil imports from Russia by the end of 2022, resolving a standoff with Hungary over Moscow’s toughest approval of the bloc since the invasion of Ukraine three months ago. did.
“It’s definitely very bullish for the price of oil, given the supply tensions. Oil prices are now going higher in March,” said Tina Teng, market analyst at CMC Markets. Teng said the reopening of China is also driving down prices.
Oil prices hit their highest level since 2008 in March and are up more than 55% so far this year.
They should get further support as demand from China is expected to pick up after the easing of COVID-19 restrictions.
Shanghai has announced an end to its two-month-long lockdown, and will allow most people in China’s largest city to leave their homes and drive their cars from Wednesday.
On the production side, OPEC+ at its meeting on Thursday is set to stick to last year’s deal, which saw July output rise marginally to 432,000 barrels per day, six OPEC+ sources said, easing rising prices. Western calls for a sharp increase to Rs.
Members of the grouping – the Organization of the Petroleum Exporting Countries and Russia-led allies – say the oil market is balanced and the recent price hike is not related to fundamentals.
(Reporting by Jesselyn Lear; Editing by Himani Sarkar)
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