Crude oil futures ended positive on Wednesday (June 1) on news that the European Union (EU) voted to suspend Russian oil imports.
- WTI crude futures were up 59 cents, or 0.5%, at $115.26 a barrel.
- BRENT crude futures were up 69 cents, or 0.6%, at $116.29 a barrel.
Crude oil contracts developed positively as EU member states decided to suspend 90% of Russian oil imports by the end of the year. The sanctions apply to crude oil imports within six months and to refined oil products within eight months, but exclude Russian oil pipelines to Hungary, the Czech Republic and Slovakia.
Some members of the OPEC and OPEC+ groups are considering the possibility of excluding Russia from the OPEC+ agreement. In the meantime, Western sanctions have affected Russia’s oil production capacity.
Removing Russia from OPEC+’s monthly oil production quota system will allow Saudi Arabia, the United Arab Emirates and other members to increase oil production, to meet OPEC+ production targets and to compensate for the lack of production capacity from Russia.
Investors will keep an eye on the EIA’s release of crude inventories today.
The Spot Market is Open
Thursday, June 2, 2022