Oil prices surged for a third day as the war in Ukraine neared the one-month mark with no conclusion in sight.
Brent topped $111 a barrel, up 14 per cent since its close last Wednesday. The European Union will consider a Russian oil
embargo this week, with US President Joe Biden due in the region for NATO, Group of 7 and EU summits, Reuters reported.
The Kremlin said any such ban would harm everyone.
In studying new sanctions, “it is unavoidable to talk about the energy sector,” Lithuanian Foreign Minister Gabrielius Landsbergis said before a meeting of EU foreign and defense ministers in Brussels. The group will talk about oil because it’s “quite easily replaceable” and generates the most revenue for the Russian budget, he said.
The global oil market has been pitched into turmoil by Russia’s invasion of Ukraine, with the US and Europe imposing penalties on Moscow and crude buyers shunning the country’s cargoes. Brent neared $140 a barrel earlier this month to hit the highest since 2008, before easing. Prices have seen unprecedented volatility, with frequent intraday swings of about $10 and broader commodity markets seizing up amid a widespread liquidity crunch.
“This morning’s price bounce suggests that the oil surge is resuming and may have the legs to carry on for weeks to come,” said Stephen Brennock, an analyst at PVM Oil Associates. “Russian supply uncertainty will likely be a familiar theme for the foreseeable future and will keep price volatility at the higher end of the spectrum.”
The Biden administration is stepping up its response to Russia’s invasion. Later Monday, officials will brief energy companies including Exxon Mobil as well as banks on the war and ensuing sanctions. Separately, Biden is due to call counterparts in Europe before traveling to the region later this week.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU