The European Union continues to look for the most painless way to abandon Russian oil. Against this background, black gold prices maintain a bullish trend on Monday morning
Last Thursday, ahead of the big Easter weekend, the price of oil rose by more than 2.5%. The jump in quotes was caused by the statement of the EU governments.
The European Union has long resisted banning Russian oil. However, last week it became known that a package of sanctions on the fuel embargo is already under development.
This news appeared before geopolitical tensions intensified. On Sunday, the Ukrainian military refused to surrender Mariupol, and Moscow reported that its soldiers had almost completely captured the city.
The continuation of the fire has increased concerns about the more rapid introduction of sanctions by the EU against Russia. Only Germany opposes the immediate embargo at the moment.
The situation is also aggravated by the fact that a potential decrease in supply on the oil market may coincide with an increase in demand for black gold. The summer driving season is approaching in the northern hemisphere.
Concerns about a sharp reduction in supply dispersed the price of black gold this morning. Quotes have reached almost 3-week highs.
Thus, Brent futures rose by 1%, or $1.09, to $112.79. And the price of WTI jumped 0.9%, or $1, to $107.95 per barrel.
The rise in energy prices is also supported by the latest news from Libya. On Sunday, the richest oil country in Africa stopped the production of black gold at the El-Fil deposit.
It also became known that the shipment of oil was stopped at the Zueitina oil port. The reason for all these events was the political crisis in Libya.
Important oil facilities of the country have been seized by protesters. Thus, citizens are calling on Prime Minister Abdel Hamid Dbeibah to resign.
According to forecasts, the oil market will maintain a bullish trend this week. This will be facilitated by speculation of a decrease in the supply of black gold.
Last week, an OPEC report showed that in March oil production increased by only 57,000 barrels per day, to 28.56 million. This is 253,000 barrels per day less than the figure allowed under the OPEC+ deal.
The comment of the International Energy Agency is also alarming. Last Friday, the IEA warned that oil production in Russia could be reduced by 3 million barrels per day due to sanctions or voluntary refusals from buyers.