Oil prices settle more than $1 higher after EU agrees to additional Russian oil sanctions, tightens supply
Oil prices ended the day with a gain of more than $1 per barrel on Wednesday, following the European Union’s agreement to impose additional sanctions on Russia that could further reduce oil flows.
U.S. West Texas Intermediate crude futures rose $1.70, or 2.48%, to $70.29, while global benchmark Brent crude futures settled $1.33, or 1.84%, higher at $73.52 per barrel.
The EU, in its 15th package of sanctions, targeted Russia’s “shadow fleet”, which has helped the country bypass a $60 per barrel price cap and keep its oil flowing.
Market analysts said that the move, combined with the EU’s decision, could significantly impact global oil supplies and prices.
However, crude inventories rose more than expected last week, serving as a curb to price gains, and the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for demand growth in 2024 and 2025, citing weak demand and non-OPEC+ supply growth.
China, the world’s largest oil importer, is also expected to boost its demand following Beijing’s plans to adopt an “appropriately loose” monetary policy in 2025, marking its first easing of its stance in 14 years.
Meanwhile, the Kremlin dismissed reports of a possible tightening of U.S. sanctions on Russian oil, calling them a “last try” to leave a difficult legacy for U.S.-Russia relations.