By Gina Lee
Investing.com – Oil was up on Tuesday morning in Asia, extending gains on news that some European Union (EU) members are considering sanctions on Russian oil. Attacks on Saudi Arabian oil facilities added a few jitters through the market, however.
Brent oil futures rose 2.42% to $118.42 by 12:26 PM ET (4:26 AM GMT) and WTI futures jumped 2.33% to $112.53.
Both contracts finished up more than 7% on Monday, as concerns about further supply disruptions continue to weigh on the market.
Oil markets “remain on edge as the restrictions on Russia exports continue to build,” Australia and New Zealand Banking Group Ltd. analyst Daniel Hynes and Soni Kumari said in a note. That’s reflected in forward curves remaining steeply backwardated, they added, referring to a bullish pattern in which prompt prices trade above those further out.
EU foreign ministers remained divided on whether to join the U.S. in sanctioning Russian oil. Some countries, including Germany, argue that the bloc is too dependent on Russian supplies.
"The proposed ban is still some way from becoming policy because a significant number of EU nations oppose the ban. Still, the fact that the ban is being discussed at all is a significant shift," Commonwealth Bank of Australia (OTC:CMWAY) analysts said in a note.
Meanwhile, Saudi Arabia warned it would not bear responsibility for disruptions to global oil supply following attacks on the country’s oil facilities by Houthis. The Iranian-aligned group fired missiles and drones at Saudi oil facilities over the weekend, which led to a temporary decline in refinery output.
Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.