Crude oil futures closed higher on Thursday (April 28) following reports that Germany, as well as other EU member states, may join oil sanctions imposed on Russia, which would further tighten global oil supplies.
- WTI crude futures rose $3.34, or 3.3%, at $105.36 a barrel.
- BRENT crude futures were up $2.27, or 2.2%, at $107.59 a barrel.
German Economy Minister Robert Habeck said that Germany, as the EU’s largest economy, could cope with the EU’s decision to sanction Russian oil. And it is hoped that Germany will be able to find a way to replace Russian oil with other supplies.
This stance by Germany suggests that it may be preparing to join the EU’s full sanctions against Russian oil. This could lead to tighter global oil supplies.
The Russian Ministry of Economy expects Russian oil production to decline by 17% this year due to sanctions imposed by the U.S. and the West.
Investors are waiting for the OPEC and OPEC+ meeting on May 5 to set production policy for June.
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Friday, April 29, 2022
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