Oil rises as EU may phase in a ban on Russian oil, says Al Attiyah Foundation – The Peninsula

Oil rises as EU may phase in a ban on Russian oil, says Al Attiyah Foundation – The Peninsula

Oil prices settled higher on Thursday after an early decline as investors covered short positions ahead of the long weekend and on news that the European Union might phase in a ban on Russian oil imports. Brent futures settled up $2.92, or 2.68 percent, at $111.70 a barrel. US West Texas Intermediate futures closed $2.70 or 2.59 percent higher at $106.95 a barrel.

The New York Times reported that the EU was moving toward adopting a phased-in ban on Russian oil, to give Germany and other countries time to arrange alternative suppliers. A phased-in ban would force European buyers to seek alternative sources, some of which in the near term are being met by Strategic Petroleum Reserve releases, but in the future, more supplies coming out of the ground will be required, according to analysts.

The IEA had warned on Wednesday that roughly 3 million barrels per day of Russian oil could be shut in from May onwards due to sanctions or buyers voluntarily shunning Russian cargoes. However, on the demand side, Chinese refiners are set to cut crude throughput this month by about 6 percent, a scale last seen in the early days of the COVID-19 pandemic two years ago, to