Oil Extends Rally on Russia Sanctions Bets, Stocks Wobble

Oil Extends Rally on Russia Sanctions Bets, Stocks Wobble

Oil prices extended gains Tuesday on the prospect of further sanctions on Russia for alleged "atrocities" in some occupied Ukraine cities, while equities struggled to build on a rally in New York and Europe.

European Union officials were discussing new measures against Moscow after reports -- denied by the Kremlin -- that troops had executed civilians, AFP said.

Among the punishments could be a ban on imports of Russian crude, following a similar move by the United States and Britain.

White House National Security Advisor Jake Sullivan also signaled more US sanctions were on the way this week.

While Europe's economy relies heavily on energy from Russia, the possibility of an embargo sent both main contracts sharply higher Monday, and they continued their rise in Asia, putting on more than one percent.

That pared some of the sharp losses seen Friday in reaction to a pledge by Washington and other major economies to unleash millions of barrels from their stockpiles to keep a lid on prices, which are fanning already high inflation.

It also offset an expected hit to demand in China from lockdowns in parts of the country -- including Shanghai, the biggest city -- sparked by a wave of Omicron outbreaks.

The continued uncertainty caused