Oil prices closed higher on Friday, supported by the prospect of a European embargo on Russian oil and the upcoming US summer travel season.
“The momentum for oil is steadily rising, while many factors are talking about a narrower market, especially if an embargo is imposed on Russian oil,” said the general manager of SPI Asset Management.
According to Bloomberg today, some leaders of the European Union are in favor of an agreement that will ban maritime transport of Russian oil, while temporarily allowing deliveries via a main pipeline to give more time to Hungary – which has no access to the sea – adjust.
Trying to come up with a package of sanctions against Russia, theEU governments discuss a plan with the European Council and the European Commission to exclude oil supplies via the Druzhba pipeline for a limited period of time, from a wider ban on oil deliveries to the bloc, the agency quoted sources familiar with the matter as saying. .
Commerzbank analysts have recently raised their oil price forecasts for the next three quarters amid a growing likelihood that the EU will agree to an embargo on Russian oil.
This development will increase demand for non-Russian oil, which is expected to support WTI and Brent prices.
However, they believe that the oil market will find balance in the second half of the year, despite the risks to supply, with analysts estimating that prices will fall below $ 100 a barrel.
Meanwhile, in the run-up to the US travel season, refined products remain in worrying shortages in the West, which is expected to keep oil prices high over the summer.
In this climate, oil type Brent July delivery strengthened by $ 2.03 or 1.7% to $ 119.43 a barrel, while in the week it jumped 6%.
The crude type West Texas Intermediate July delivery gained 98 cents, or 0.9%, to $ 115.07 a barrel. In the week it strengthened by 1.5%, in the 5th consecutive 5-day period with gains.