Crude Brent was up 1.7 percent at $ 109.40 a barrel, while crude WTI was up 1.03 percent at $ 106.50 a barrel. Both deals are due to be completed within the week and mark their fifth consecutive monthly earnings, reinforced by reports that the European Union (EU) will phase out Russian oil imports by the end of the year. Germany – the bloc’s largest economy – has withdrawn its opposition to the measure, which is being considered to be included in a possible sixth EU sanctions package on Russia following its invasion of Ukraine in February. Prices were volatile for the next two months, peaking at a 14-year high of $ 139 a barrel in early March before falling below the $ 100 mark later that month as developed economies faced the prospect of supply shortages. The choice of the US and the UK to impose sanctions on Russian energy supplies sparked a price spiral exacerbated by narrow markets amid OPEC +’s persistent failure to boost output by a modest increase of 400,000 extra barrels a day. promised. With calls from the West to boost supplies falling short, the United States and members of the International Energy Agency (IEA) have chosen to flood the market with 240 million barrels – causing prices to fall as President Joe Biden desperately tries to hold back. the cost – Living crisis in view of the main by-elections this year. The latest resurgence in both key benchmarks was offset by ongoing Cowid-19 lockdowns in China, the world’s largest importer of crude oil. The country has shown no signs of easing lockdown measures in Shanghai, despite the impact on its economy and global supply chains. However, prices are likely to remain high independently, with fears of supply shortages continuing to escalate. Russia’s oil production could fall by as much as 17% this year, according to documents seen by Reuters, as Western sanctions hit investment and exports. Reflecting on this reality, Exxon Mobil revealed earlier this week that Russian plant Exxon Neftegas had declared force majeure for its Sakhalin-1 operations. The Sakhalin-1 project produces crude Sokol oil off the coast of Sakhalin Island in the Russian Far East, exporting about 273,000 barrels a day, mainly to South Korea, along with Japan, Australia, Thailand and the United States. The energy giant revealed last month that it would withdraw about $ 4 billion in assets and shut down all operations in Russia, including Sakhalin 1. Meanwhile, OPEC + is likely to abide by its existing agreement and agree on another small production increase for June, when it meets on May 5th. From CityAM More top readings from Oilprice.com:
