Oil bounces higher ahead of Fed moves, EU sanctions on Russian oil

Oil bounces higher ahead of Fed moves, EU sanctions on Russian oil

The gains came on the back of news from Tuesday that the European Union would slap new sanctions on Russia for waging war on Ukraine.

European Commission President Ursula von der Leyen is expected to spell out the proposed new sanctions on Wednesday, including a ban on imports of Russian oil by the end of 2022, officials said.

Investors are also waiting for an announcement from the Fed on Wednesday. It is expected to intensify efforts to bring down high inflation by raising interest rates and reducing its balance sheet.

Oil "prices remain in a holding pattern ahead of EU sanctions and the Fed", Stephen Innes of SPI Asset Management said in a note.

In the United States, crude and fuel stocks fell last week, according to market sources citing American Petroleum Institute figures. Crude stocks fell by 3.5 million barrels for the week ended April 29, they said. This was more than an expected 800,000-barrel drop estimated in a Reuters poll.

U.S. government data on stocks is due on Wednesday.

Oil prices fell more than 2% on Tuesday on demand worries stemming from China's prolonged COVID-19 lockdowns that have curtailed travel plans during the Labour Day holiday season.

The global manufacturing purchasing managers index contracted in