Oil rally cools after Germany pushes back on Russian oil ban

Oil rally cools after Germany pushes back on Russian oil ban

A rally in oil prices slowed and moves in equities markets in Asia were limited on Tuesday after Germany pushed back on US efforts to ban Russian crude.

Brent, the international crude benchmark, rose 1.7 per cent to $125.31 a barrel in Asia trading after finishing the previous session up more than 4 per cent. West Texas Intermediate, the US marker, was up 0.7 per cent at $120.26.

Brent had jumped almost 18 per cent to $139 on Monday after the US said it was in discussions with European allies to freeze Russian oil imports in retaliation for the invasion of Ukraine.

But prices pulled back after German chancellor Olaf Scholz indicated Berlin was reluctant to throttle trade he considered of “essential importance” to the European economy.

European natural gas prices settled about 5 per cent higher at €215.50 a megawatt hour, after jumping as much as 40 per cent earlier on Monday.

The threat of a ban on Russian oil rattled Wall Street, sending the S&P 500 down almost 3 per cent and the tech-focused Nasdaq Composite 3.6 per cent lower. The Euro Stoxx 50 fell more than 1 per cent as Moscow warned of “catastrophic consequences” for blocking its oil.

The conflict in eastern