Oil rises on EU’s Russian oil ban effort, demand hopes

Oil rises on EU’s Russian oil ban effort, demand hopes

LONDON - Oil hit its highest in seven weeks on Tuesday, supported by the European Union's ongoing push for a ban on Russian oil imports that would tighten supply and as investors focused on higher demand from an easing of China's COVID lockdowns.

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto on the proposed oil embargo. But some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil.

Brent crude rose as high as $115.69, its highest since March 28, and by 1159 GMT was up $1.26, or 1.1%, to $115.50. U.S. West Texas Intermediate (WTI) crude gained $1.17, or 1%, to $115.37.

"Oil prices have remained near multi-week highs this week, supported by surging gasoline and distillate prices in the U.S., and fears around an EU ban on Russian oil imports remaining in play," said Jeffrey Halley, analyst at brokerage OANDA.

Crude has surged in 2022, with Brent hitting $139, its highest since 2008, in early March as Russia's invasion of Ukraine exacerbated supply concerns.

Oil also gained support from hopes of demand recovery in China as it looks to ease COVID restrictions, analysts said, and