Oil prices rose sharply to more than 5% today, with concerns about supply levels returning to the fore as the EU “struggles” to agree to an embargo on Russian crude at a time when gas supplies were cut to key station of Ukraine.
In particular, after two sessions with a cumulative loss of about 10%, Brent’s July contract today jumped 4.93% the 5.05% dollars with its price closing at $ 107.5 the barrel.
Similarly, the US WTI strengthened even more against 5.96% the $ 5.95 and completed transactions in $ 105.71 the barrel.
“I suspect that disruptions to gas flows in Ukraine are having a steadily increasing impact,” Oanda analyst Jeffrey Haley told CNBC.
For his part, Andrew Lipow of Lipow Oil Associates in Houston estimates that “prices will continue to rise, especially if the European Union reaches an agreement on the gradual closure of Russian oil markets for the rest of this year.”
It is recalled that the EU has proposed the imposition of an embargo on Russian oil, which analysts say will further complicate the situation already prevailing in the crude market and shift flows.
At present, EU members have not been able to reach an agreement, as a unanimous decision by the bloc is required, but Hungary is reacting.
Oil prices have also found additional support for the Chinese economy, which is expected to boom after inflation weakened and signs of a coronavirus outbreak suggesting an improvement in economic activity.
Source: Capital
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