Oil prices are widening today as some members of the European Union have discussed a possible oil embargo on Russia, while attacks on Saudi facilities have disrupted the market.
West Texas Intermediate futures are up $ 2.20, or 1.96%, at $ 114.32 a barrel, and Brent futures are up $ 3.18, or 2.75%, at $ 118.80 a barrel.
Both contracts have risen more than 7% on Monday as the possibility of further supply distortions affected the market.
European Union foreign ministers are divided over whether to join the United States in imposing sanctions on Russian oil, with some countries, including Germany, arguing that the bloc is overly dependent on Russia’s fossil fuels.
“It seems that energy traders are becoming increasingly confident that supply shortages are imminent,” said an OANDA analyst.
She points out that prices are rising in response to geopolitical concerns about both Ukraine and the attacks on Saudi Aramco facilities.
“Right now it seems that the risks are increasing and could lead to higher prices,” he added.
Saudi Arabia has warned it will not be held responsible for disruptions to global supplies following attacks on its oil facilities by the Houthis on Iran’s “line”.
Source: Capital
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