The oil prices rose on Thursday, supported by supply concerns after the European Union (EU) unveiled plans to new sanctions against Russiaincluding an oil embargo.
Pressures from a stronger dollar and a drop in global stock markets kept prices contained.
The futures of Brent they rose 76 cents, or 0.69%, to $110.90 a barrel at . US crude West Texas Intermediate it gained 45 cents, or 0.42%, to $108.26.
The dollar rallied to the highest since December 2002, a day after the Federal Reserve he stated that he would take aggressive action to combat inflation. A strong dollar makes oil more expensive for buyers with other currencies.
Stocks on Wall Street fell as investors dumped risky investments, worried the Fed might raise rates further this year to curb inflation.
The EU sanctions proposal, which needs the unanimous backing of the bloc’s 27 countries, includes the phasing out of imports of Russian refined products by the end of 2022 and a ban on all shipping and insurance services.
“The oil market has not fully priced in the possibility of an EU oil embargo, so crude oil prices are expected to rise in the summer months if the law is passed,” the chief said. oil markets researcher at Rystad Energy, Bjornar Tonhaugen.
Japan said it would have a hard time cutting off imports of Russian oil immediately.
The Organization of Petroleum Exporting CountriesRussia and allied producers (OPEC+) agreed to another modest monthly increase in oil production.
Ignoring calls from Western countries to increase production, the OPEC+ agreed to increase June output by 432,000 barrels a day, in line with its plan to undo cuts made when the pandemic hit demand.
Giovanni Staunovo, a strategist at UBS, cited “mobility restrictions in China weighing on oil demand, high Russian crude exports in April and dwindling spare capacity” at OPEC+.