OIL prices climbed yesterday, hitting their highest in more than two months, as traders waited to see if the EU would reach an agreement on banning Russian oil imports to sanction Moscow for its invasion of Ukraine.
The Brent crude futures contract for July, which expires tomorrow, was up 37 cents, or 0.3 percent, at $119.80 (R186)a barrel in morning trade, after rising to as high as $120.50 earlier in the session. The more active Brent contract for August rose 67 cents, or 0.6 percent, to $116.23 a barrel.
US West Texas Intermediate (WTI) crude futures jumped 78 cents, or 0.7 percent, to $115.85 a barrel, extending solid gains made last week.
The EU was due to meet yesterday and today to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions Moscow calls a “special military operation”.
“If we look at the recent price movement, it seems that market has factored in that the European Union may reach a deal on some form of restrictions on Russian crude,” said Madhavi Mehta, a commodity research analyst at Kotak Securities.
“We may see further upside only if it is a complete ban. Any watered-down deal or one which includes exemptions may not have much positive impact.”
EU governments failed to agree on an embargo on Russian oil on Sunday, but would continue talks on a deal to ban seaborne deliveries of Russian oil while allowing deliveries by pipeline, before the summit on Monday afternoon, officials said.
Reuters