Oil prices surged over 7% on Monday, as European Union countries are considering a ban on Russian oil coupled with an attack on Saudi oil facilities over the weekend.
The international oil benchmark Brent crude is up 7.26% at %115.25 per barrel at the time of writing this report while the U.S oil Western Texas Intermediate is gaining 6.55% trading at $111.45 per barrel.
EU ministers are set to discuss a ban on Russian oil in an effort to force Russia to abandon its military operation in Ukraine. EU foreign and defense ministers are expected to debate the matter ahead of the arrival of US President Joe Biden in Brussels on Thursday for talks with NATO’s 30 allies, the EU, and the Group of Seven (G7) including Japan.
“It’s unavoidable we start talking about the energy sector, and we can definitely talk about oil because it is the biggest revenue to Russia’s budget,” Reuters quotes Lithuanian Foreign Minister Gabrielius Landsbergis as having said.
“Optimism is seeping away about progress in talks to achieve a ceasefire in Ukraine and that’s sent the price of oil on the march upwards,” Susannah Streeter, senior markets analyst at UK-based asset manager Hargreaves Lansdown, said
Attacks on Saudi oil facility by Yemen’s Iran-aligned Houthi group over the weekend was also a cause of concern as supplies were temporarily affected.
On Monday Saudi Arabia said it would not be responsible for any global oil supply shortages after these attacks.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.