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Oil prices rise as the EU pushes for a Russian oil embargo.

NEW YORK (AP) – Oil prices spiked on Wednesday as the European Union (EU) announced a plan to phase out Russian oil, causing supply concerns.

On the New York Mercantile Exchange, the West Texas Intermediate (WTI) for June delivery gained 5.4 US dollars, or 5.3 percent, to settle at 107.81 dollars a barrel.

On the London ICE Futures Exchange, Brent crude for July delivery rose 5.17 dollars, or 4.9 percent, to close at 110.14 dollars a barrel.

According to European Commission President Ursula von der Leyen, Russia’s crude oil supplies will be phased out in six months and refined goods by the end of the year.

The plan is part of a sixth round of sanctions against Russia for its military intervention in Ukraine.

According to Carsten Fritsch, an energy analyst at Commerzbank Research, EU countries purchased an average of 3.5 million barrels of crude oil and oil products per day from Russia in the fourth quarter of 2021, according to data from the International Energy Agency.

“This quantity now has to be sourced somewhere on the market,” he continued. “If all other variables remain equal, supply will likely tighten, pushing up costs.”

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