©Reuters. FILE PHOTO: Workers walk as oil pumps are seen in the background at the Uzen oil and gas field in Kazakhstan’s Mangistau region November 13, 2021. REUTERS/Pavel Mikheyev
by Stephanie Kelly
NEW YORK (Reuters) – Oil prices rose more than 3% on Monday, and investors worried about tighter supply as mounting civilian deaths in Ukraine increased pressure on European countries to impose sanctions on the sector. Russian energy.
The global benchmark jumped $3.14, or 3%, to settle at $107.53 a barrel. US West Texas Intermediate crude rose 4.01 dollars, or 4%, to settle at 103.28 dollars a barrel. Trading was volatile with both contracts rising after being down over $1.
German Chancellor Olaf Scholz said Russian President Vladimir Putin and his supporters would “feel the consequences” of the events in Bucha, outside the capital kyiv, where a mass grave and bound bodies were found shot. at point blank range
Western allies would agree to further sanctions against Moscow in the coming days, he said, although the timing and scope of the new package were unclear.
French President Emmanuel Macron suggested sanctions on oil and coal, adding that there were “very clear clues pointing to war crimes” by Russian forces.
Since the Russian invasion of Ukraine on February 24, sanctions and evasion of Russian oil by buyers have already affected production and raised fears of a supply shortage. [IEA/M]
“As the US and EU scale back purchases of Russian oil, China and India remain the main remaining customers and many of those countries’ refiners may be reluctant to buy Russian oil with the associated negative public relations” said Andrew Lipow, president of Lipow Oil Associates in Houston.
Crude fell about 13% last week after President Joe Biden announced a record release of US oil reserves and as members of the International Energy Agency pledged to further tap reserves. Brent crude reached $139 last month, its highest level since 2008.
Saudi Arabia’s state oil producer Aramco (SE:) raised the official May sales price to Asia for its flagship Arab Light crude, according to a pricing document seen by Reuters.
“That suggests oil demand remains very strong and in doing so it’s going to deplete US oil supplies and reduce supplies,” said Phil Flynn, an analyst at Price Futures Group.
Oil drew support from a pause in talks in Vienna to revive the nuclear deal with Iran, which would allow sanctions on Iranian oil to be lifted. Iran blamed the United States for the disruption.
Downward pressure came from a truce in Yemen, which could ease supply threats in the Middle East.
For the first time in the seven-year conflict, the United Nations brokered a two-month truce between a Saudi-led coalition and the Iran-aligned Houthi group. Saudi oil facilities have been attacked by the Houthis during the fighting.
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