Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Oil jumps $5 a barrel as EU nears ban on Russian oil

Commodities May 04, 2022 03:49PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Storage tanks are seen at the Petroineos Ineos petrol refinery in Lavera, France, March 29, 2022. REUTERS/Benoit Tessier
 
LCO
+0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By David Gaffen

NEW YORK (Reuters) -Oil prices jumped on Wednesday, as the European Union, the world's largest trading bloc, spelled out plans to phase out imports of Russian oil, raising concerns about further market tightness as those nations hunt for adequate supply.

Crude benchmarks have risen steadily over the past two months following Moscow's invasion of Ukraine. Until now, the European Union has been reluctant to fully cut off imports of Russian oil and gas, and its plans still do not suggest a full ban for all EU members.

Europe imports some 3.5 million barrels of Russian oil and oil products daily, and also depends on Moscow's gas supplies.

"Inventories are so tight, so against this backdrop, when you're talking about this ban, there are a lot of questions on how (Europe) is going to make up for this," said Phil Flynn, senior analyst at Price Futures Group.

Brent crude futures settled up $5.17, or 4.9%, to $110.14 a barrel. West Texas Intermediate crude futures settled at $107.81 a barrel, up $5.40, or 5.3%.

European Commission President Ursula von der Leyen on Wednesday proposed a phased oil embargo on Russia, as well as sanctioning Russia's top bank.

The Commission's measures include phasing out supplies of Russian crude within six months and refined products by the end of 2022, von der Leyen said. She also pledged to minimise the impact of the move on European economies.

Hungary and Slovakia, however, will be able to continue buying Russian crude oil until the end of 2023 under existing contracts, an EU source told Reuters.

Russia could offset the loss of one of its primary customers by selling oil to other importers including India and China. Neither country has stopped buying from Moscow.

Needs for much greater supplies are not likely to be met at a meeting on Thursday of the Organization of Petroleum Exporting Countries and allied producers. OPEC+ is expected to stick to its plan for a gradual ramp-up of monthly production.

In the United States, crude stocks rose modestly last week, according to the U.S. Energy Information Administration. Stocks were up 1.2 million barrels as the United States released more barrels from its strategic reserves.

Fuel stocks fell, in part due to stronger exports of products since Russia's invasion as buyers have sought other sources. [EIA/S]

The markets largely shook off the Federal Reserve's announcement that it would raise interest rates by a half percentage point to try to bring down rising inflation.

"The market was up so strong before the announcement I think (the Fed) was a foregone conclusion," said Gary Cunningham, director of market research at Tradition Energy.

Oil jumps $5 a barrel as EU nears ban on Russian oil
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
sharath naik
agsn May 04, 2022 3:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's pointless, there is no one replacing Russian oil. Saudi ruler is working against EU so he won't increase production. so what EU is replacing with? oil that someone else currently buys? what do you think they would do? buy Russian as they would be left with no option. the only way to hurt Russia is not oil but gas, which EU refuses to stop buying. so EU just wants someone else to bear the hurt for their goal. since countries like India cannot keep the oil they were buying before, they will move to buy Russian. the only way is to get oil supply up, which means getting Saudi, Iran and venuzuala to produce more. which is going to be hard now given the west has burnt the bridges there.
Cyiza derrick
Cyiza derrick May 04, 2022 3:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hungary Will veto this proposal
Péter Pataki
Péter Pataki May 04, 2022 10:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hungary will veto this proposal, the Hungarian Minister of Foreign Minister said in an interview
Péter Pataki
Péter Pataki May 04, 2022 10:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hungary will veto Russian oil ban, the Hungarian Minister of Foreign Affairs said in an interview
CN KW
CN KW May 04, 2022 6:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
rates going up but nothing coming down including inflation! this is double edge sword, with crude rocketed to new level maybe could be higher and gold is going north to previous ATH soon after 4th May.  All this release of reserved crude with other nations is not bring the price down either, Mr. Joe is making the world go crazy and soon will come to a halt and chaos!.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email