Crude oil prices rose sharply on Monday and lifted the most active crude futures contract to a two-week high, amid concerns over the ongoing war in Ukraine and on expectations the EU might impose a ban on Russian oil,
An attack on Saudi oil facilities over the weekend raised concerns about crude supplies and contributed to the surge in prices.
Saudi Arabia announced a “temporary reduction” in oil output at a facility run by energy giant Aramco on Sunday, after Yemen’s Houthi rebels launched multiple cross-border attacks.
West Texas Intermediate Crude oil futures for April ended higher by $7.42 or about 7.1% at $112.12 a barrel, gaining for a third straight session, and at the highest closing level since March 8.
Brent crude futures were up $8.29 or about 7.7% at $116.22 a barrel a little while ago.
With little sign of the Russia-Ukraine conflict easing, the prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock, the International Energy Agency (IEA) said in its oil market report for March 2022 released last week.
European Union governments will consider joining the United States in a Russian oil embargo as they gather this week with U.S. President Biden for a series of summits.
The U.S. and the U.K. have already announced plans to ban Russian oil
If “negotiations” with Russian President Vladimir Putin fail then “that would mean that this is a third World War,” Ukrainian President Volodymyr Zelenskyy warned as Russian forces broadened their bombardment of the besieged Ukrainian city of Mariupol.