Crude Oil Closes with a Plus of More Than 5% on News of EU Sanctions Against Russian Oil

Crude oil futures closed up more than 5% on Wednesday (May 4) following reports that the president of the European Union (EU) has proposed that member states suspend oil imports from Russia. Such measures will lead to further tightening in the oil market.

  • WTI crude futures were up $5.40, or 5.3%, at $107.81 a barrel.
  • BRENT crude futures rose $5.17, or 4.9%, to close at $110.14 a barrel.

Ursula von der Leyen, President of the European Commission (EC), told the European Parliament yesterday that the EU will suspend imports of Russian crude oil within six months. And suspend imports of Russian refined products by the end of this year.

This means that it will completely stop importing oil from Russia. This includes the suspension of the transport of oil by sea and pipeline, crude oil and refined oil products.

This time, sanctions against Russian oil must be approved by all 27 EU member states before they can take effect.

Hungary and Slovakia will continue to buy crude from Russia under the current deal until the end of 2023.

According to the EIA, US crude oil inventories rose by 1.3 million barrels last week. In contrast to analysts’ expectations, who had expected a decline of 829,000 barrels.

Investors are awaiting the minutes of the OPEC and OPEC+ meeting today (May 5) to set production policy for June.

The Spot Market is Open

Thursday, May 5, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.25

108.16

+0.35

+0.32%

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