2.6% dip for crude, to 13-year high gas

Oil prices fell on Tuesday as investors looked into the possibility of the European Union imposing an embargo on Russian oil and the impact on demand from lockdowns in China to tackle Covid-19.

The European Commission is preparing to submit to the Member States for approval the 6th package of sanctions against Russia, which will include a plan to impose an embargo on Russian oil imports by the end of 2022. Hungary and Slovakia, however, have asked to be exempted from the measure. this and possibly give them a longer time frame.

At the same time, massive lockdowns in China continue to hurt economic activity, restricting demand. Concerns about a lockdown in Beijing remain at the forefront, while restrictions in Shanghai remain, sparking fears about demand for the world’s largest oil importer.

Against this background, the June crude contract lost $ 2.76 or 2.6% and closed at $ 102.41 a barrel on the New York Mercantile Exchange.

Brent July, meanwhile, fell $ 2.61, or 2.4 percent, to $ 104.97 a barrel on ICE Futures.

At a high 13 years old gas

US gas prices hit a new 13-year high today amid growing concerns that stocks will not be enough to meet demand this summer.

The combination of the jump in demand after the opening of the US economy with the surge in demand abroad, especially in Europe due to the war in Ukraine, has led to a rally in prices. US stocks are 17% lower than normal, showing the largest deficit since 2019 for this period of the year, according to Bloomberg.

The June delivery contract jumped 6.4% to $ 7,954 per million British thermal units in New York. This is the highest level since August 2008.