In an exclusive interview with “Sky News Arabia”, Professor Terry Bruce considered that China and India will benefit from obtaining oil at lower prices after the European decision to partially ban Russian crude.
Brent crude futures for July, which expire on Tuesday, rose more than $2.31, or 1.9 percent, to $123.98 a barrel, after rising earlier to $124.10 a barrel, its highest since March 9.
US West Texas Intermediate crude futures rose $4.27 to $119.34 a barrel, rising for the fourth consecutive session, up 3.7 percent from Friday’s closing price and recording the highest level since March 9. Monday was a public holiday in the United States.
Both contracts are expected to end May on a rise for the sixth consecutive month.
European Union leaders agreed in principle to reduce oil imports from Russia by 90 percent by the end of 2022, and this is the most severe punishment so far imposed by the European Union on Moscow since the start of the crisis in Ukraine three months ago.
Oil imports via pipelines from Russia as a concession to Hungary are exempted from the embargo.
Oil prices were also supported by Shanghai’s decision to end a two-month closure due to the spread of the Covid-19 disease, allowing the vast majority of residents of the big city to leave their homes and drive their cars, starting tomorrow, Wednesday.
On the production side, the OPEC + alliance is set to stick to a limited increase in production in July of 432,000 barrels per day, according to six sources from the alliance, ignoring calls from the West to increase production at a faster pace in order to contain prices.
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