Brent Crude: futures jumped nearly 2% to above $100 per barrel on Tuesday, recouping some losses after a sharp drop in the previous session, as investors weighed the potential for more sanctions on Russian energy.
The EU is drafting proposals for an oil embargo on Russia, some foreign ministers said Monday, although there was no agreement to ban Russian crude.
Tuesday’s rise in oil prices also followed a warning from OPEC that some 7 million barrels per day of Russian oil and other liquid exports could be lost due to sanctions or voluntary actions, and it would be impossible to replace those volumes.
The UK oil benchmark dropped 4.2% on Monday amid concerns that Covid lockdowns in China would hurt demand and ahead of a massive oil reserve release by major consumers. IEA member states are planning to release some 240 million barrels over the next six months in a bid to calm volatile oil markets