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Crude oil futures closed higher on Thursday (April 21) following reports that the European Union (EU) is considering a halt to Russian oil imports. This could lead to the world oil market facing a tight supply situation.
- WTI crude futures were up $1.6, or 1.6%, at $103.79 a barrel.
- BRENT crude futures were up $1.53, or 1.4%, at $108.33 a barrel.
The EU is working on measures to ban imports of Russian oil products. EU member states will negotiate oil sanctions after the last round of French elections on April 24.
Previously, the EU had already decided on sanctions against coal imports from Russia. And it will probably soon follow the US, Canada and Australia in imposing sanctions on Russian oil in response to the Russian attack on Ukraine.
OPEC Secretary General Mohammad Barkindo warned that the current and future sanctions against Russia would lead to severe oil shortages. And there is no way to replace the missing amount of oil.
Meanwhile, oil prices continued to rise after the Libyan National Oil Corporation said the company’s oil production fell by more than 550,000 barrels per day due to the blockade of oil fields and export terminals.
In addition, oil prices were also driven by reports that OPEC and OPEC+ produced below their targets in March. At the same time, Russian oil production was affected by sanctions imposed by the US and the West.
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Friday, April 22, 2022