Crude Oil Rises More Than $8 After EU Considers Sanctions Against Russian Oil

Crude oil futures closed more than 7% higher on Monday (March 21) following news that European Union (EU) member states are also considering sanctions against Russian oil after the United States. Meanwhile, investors are watching the U.S. crude oil inventory report to be released tomorrow.

  • WTI crude futures were up $7.42, or 7.09%, to close at $112.12 a barrel.
  • BRENT crude futures were up $7.69, or 7.12%, at $115.62 a barrel.

Governments of European Union (EU) countries are considering whether to impose sanctions on Russian oil imports. EU politicians will meet on Thursday to discuss a possible oil embargo.

Russia, on the other hand, says that sanctions against Russian oil in the EU will affect everyone, especially ordinary citizens, who will face significant price increases.

Dmitry Peskov spokesman for the Kremlin commented,

“This is a decision that would hit everyone. Americans would not lose much and will feel much better than Europeans. Europeans would have it hard.”

Why the EU ministers are talking about an oil embargo and not about gas is obvious. Oil seems easier to replace than gas. Gas is seen in many EU countries as transitional energy to CO2 neutrality. In addition, this will raise prices at the gas stations even further, which may help the push for electrification of road transport.

Attention is also turning to the weekly report on US crude oil inventories. The US Energy Information Administration (EIA) will publish this information tomorrow.

The Spot Market is Open

Tuesday, March 22, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.20

114.31

+2.19

1.95%

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