Oil climbs above $103 with EU working on new Russia sanctions – The Peninsula

Oil climbs above $103 with EU working on new Russia sanctions – The Peninsula

Oil rallied back above $100 as the European Union said it was working on new Russian sanctions, while Saudi Arabia hiked its prices for Asian buyers further into record territory.

West Texas Intermediate added as much 4.5% to trade above $103 a barrel. The European Union on Monday condemned Russia for alleged atrocities by its military in several Ukrainian towns, saying it will work on additional sanctions against Moscow as a matter of urgency. French President Emmanuel Macron said the group will discuss possible sanctions on oil and coal while German Finance Minister Christian Lindner said all economic ties with Russia must be severed as soon as possible.

Saudi Arabia raised prices for customers in all regions. State producer Saudi Aramco hiked its Arab Light price to Asia by $4.40 from a month earlier, a large increase that pushed prices further into record territory.

Last week, prices experienced their biggest weekly decline in two years after the U.S. announced a giant release of oil from its strategic petroleum reserve.

Allies within the International Energy Agency will also tap stockpiles, with details expected this week. After the U.S. move, the structure of the futures curve has weakened, indicating traders think supply could be less tight.

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