Oil Prices Hit 2-month High to $124 after EU Ban on Russian Imports

Oil prices continued to rise on Tuesday after the European Union agreed to a partial ban on Russian oil during the current year 2022.

China’s decision to lift some restrictions imposed to contain the coronavirus, amid increased demand ahead of the peak of the summer holiday season in the United States and Europe also contributed to the increase in oil prices today,

Brent crude futures for July rose more than $2.31 or 1.9% to $123.98 a barrel, after rising earlier to $124.10 a barrel, its highest since March 9.

West Texas Intermediate (WTI) crude futures rose $4.27 to $119.34 a barrel, rising for the fourth consecutive session, up 3.7% from Friday's closing price, and recording the highest level since March 9.

European Union leaders agreed in principle to cut oil imports from Russia by 90% by the end of 2022, the most severe punishment yet imposed by the EU on Moscow since its operation in Ukraine three months ago.

Exempted from the embargo oil imports via pipelines from Russia as a concession to Hungary.

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 raise production at a faster pace in order to contain prices.