With little sign of easing the conflict, attention turned to whether the market could replace sanctioned Russian barrels.
Oil prices rose more than $4 on Monday, with Brent crude climbing above $111 a barrel as European Union countries considered joining the United States in a Russian oil embargo and following a weekend attack on Saudi oil facilities.
Brent crude futures were up $4.44, or 4.1%, to $112.37 a barrel at 1321 GMT, contributing to a 1.2% gain on Friday.
US West Texas Intermediate (WTI) crude futures were up $4.05, or 3.9%, to $108.75, extending Friday’s 1.7% jump.
Prices soared ahead of talks this week between European Union governments and US President Joe Biden over a series of summits aimed at hardening the West’s response to Moscow over the invasion of Ukraine.
EU governments will consider imposing an oil embargo on Russia.
Ukraine’s deputy prime minister Iryna Vershchuk said early Monday there was no chance the country’s troops would surrender in the besieged eastern port city of Mariupol.
With little sign of easing the conflict, attention turned to whether the market could replace sanctioned Russian barrels.
“Optimism is seeping away about progress in talks to reach a ceasefire in Ukraine and that has sent oil prices soaring,” said Susannah Streeter, senior market analyst at UK-based asset manager Hargreaves Lansdown.
“With the possibility of over a million barrels of Russian oil being divested per day, as the Netherlands and Germany together received about a quarter of Russia’s crude and light oil exports, the demand for crude oil from OPEC+ countries would increase.”
Over the weekend, attacks by the Iran-affiliated Houthi group caused a temporary drop in production at a Saudi Aramco joint venture refinery in Yanbu. year lows.
The latest report from the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, collectively known as OPEC+, showed that some producers are still failing to meet their agreed supply quotas.
This post Crude prices rise more than $4 as European Union considers Russia’s oil ban
was original published at “https://www.financialexpress.com/market/commodities/crude-prices-up-more-than-4-as-european-union-mulls-russian-oil-ban/2467035/”
