Oil prices rose more than 7% on Monday, boosted by the prospect of a possible European embargo on Russian crude exports.
North Sea Brent barrel for May delivery closed at strong rise of 7.12% at $115.62 in London, to its highest level in 10 days. Meanwhile, the barrel of West Texas Intermediate (WTI) for delivery in April gained the same amount, 7.08%, to $112.12 in New York, to rise above $110 for the first time in two weeks.
European Union foreign and defense ministers met in Brussels on Monday to discuss new sanctions against Moscow following Russia’s invasion of Ukraine.
“The possibility of additional sanctions against Russiaalready priced by Western buyers” is “a colossal risk” and could push prices further, said Stephen Innes of SPI Asset Management.
“I think it will be hard for the whole EU to accept” an embargo, said James Williams of WTRG Economics. For Andrew Lebow, of the Commodity Research Group, only a further marked deterioration of the conflict could “perhaps make the Germans move” on this issue, according to the AFP agency.
A full EU embargo would deprive Russia of a destination for some 2.5 to 3 million barrels a day of crude, according to the sources, and Europe of a quarter of its oil requirements.
The United States and the United Kingdom have already decided on an embargo on Russian oil.
