Oil prices jumped for a third day as the war in Ukraine neared the one-month mark with no conclusion in sight.
Brent crude rose above $111 a barrel, up 14% since its close last Wednesday. The European Union will consider Russian oil
embargo this week, with US President Joe Biden expected in the region for NATO, Group of 7 and EU summits, Reuters reported.
The Kremlin said such a ban would hurt everyone.
In the study of new sanctions, “it is inevitable to talk about the energy sector”, Lithuanian Foreign Minister Gabrielius Landsbergis said before a meeting of EU foreign and defense ministers in Brussels. The group will talk about oil because it is “pretty easily replaceable” and generates the most revenue for the Russian budget, he said.
The global oil market has been thrown into turmoil by Russia’s invasion of Ukraine, the United States and Europe imposing sanctions on Moscow and crude buyers avoiding shipments from the country. Brent neared $140 a barrel early in the month to hit the highest since 2008, before easing. Prices have seen unprecedented volatility, with frequent intraday swings around $10 and broader commodity markets seizing up amid a widespread liquidity crunch.
“This morning’s price rebound suggests that the oil surge is picking up and may have the legs to continue for weeks to come,” said Stephen Brennock, analyst at PVM Oil Associates. “Russian supply uncertainty will likely be a familiar theme for the foreseeable future and will keep price volatility at the high end of the spectrum.”
The Biden administration is stepping up its response to the Russian invasion. Later Monday, officials will brief energy companies, including Exxon Mobil, as well as banks, about the war and the resulting sanctions. Separately, Biden is to call his counterparts in Europe before traveling to the region later this week.