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Oil prices strengthen after Russia oil ban, end of Shanghai lockdown

Oil prices strengthened on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai, which could bolster demand in an already tight market. Both benchmarks registered gains over May, marking the sixth straight month of rising prices.

Brent crude was up $1.83, or 1.6%, at $117.46 a barrel as of 11:56 a.m. EDT (1556 GMT). U.S. West Texas Intermediate crude gained $1.77, or 1.6%, to $116.45.

EU leaders agreed in principle on Monday to cut 90% of oil imports from Russia by the end of this year, the bloc’s toughest sanctions yet since the start of the invasion of Ukraine, which Moscow calls a “special military operation”. Once fully adopted, sanctions on crude will be phased in over six months and on refined products over eight months.

In China, Shanghai’s strict COVID-19 lockdown ended on Wednesday after two months, prompting expectations of firmer fuel demand from the country.


Business Standard

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