EU Discusses Ban On Russian Oil While Oil Prices Keep Rising

As the European Union discusses joining the U.S. in banning Russian oil and the recent attack on Saudi oil sites, oil prices have gone up by more than $4 on Monday, with Brent crude rising to over $111 a barrel.

Prices have risen right before this week’s summits between European Union countries and US President Joe Biden, the main purpose of these meetings is to intensify the Western response to Russia’s invasion of Ukraine. Officials from the European Union will also discuss putting a ban on Russian oil.

Iryna Vershchuk, Ukraine’s deputy prime minister, declared early Monday that the country’s military in Mariupol will not surrender.

Focus turned to whether the market will be able to replace Russian barrels that had been restricted by sanctions from several countries.

“Optimism is seeping away about progress in talks to achieve a ceasefire in Ukraine and that’s sent the price of oil on the march upwards,” senior markets analyst at Hargreaves Lansdown, Susannah Streeter said.

“With the possibility that more than a million barrels of Russian oil a day will be snubbed, given that the Netherlands and Germany combined received around a quarter of Russia’s crude and light oil exports, demand would shoot up for crude supplies from OPEC+ nations.”

Refinery output was temporarily stopped by Houthi attacks on a joint project between Saudi Aramco and Yanbu Oil Company, which concerned the oil product markets, where Russia is a significant supplier and global stockpiles are near multiyear lows.