Oil Extends Sixth Monthly Gain as EU Set to Curb Russian Supply
Oil headed for the longest run of monthly gains in more than a decade as European Union leaders agreed to pursue a partial ban on imports of crude from Russia while China further eased anti-virus curbs, aiding demand. Brent crude neared $123 a barrel, hitting a two-month high. The latest round of EU sanctions would forbid buying oil from Russia delivered by sea but includes a temporary exemption for pipelines, European Council President Charles Michel said. The package, designed to punish Moscow for the invasion of Ukraine, also proposes a ban on insurance related to shipping oil to third countries. The EU’s move was agreed during a leaders’ summit in Brussels after members overcame objections from Hungary, which had been blocking the embargo as it sought assurances its energy supplies wouldn’t be disrupted. Under the deal, the country would continue to receive Russian oil via pipeline.
Brent for July settlement gained 0.9% to $122.78 a barrel on the ICE Futures Europe exchange as of 11:30 a.m. in Singapore.The August contract, which has more volume and open interest, traded 1% higher at $118.75 a barrelWest Texas Intermediate for July delivery was at $118.03 a barrel on the New York Mercantile Exchange, 2.6% higher than Friday’s settlement.There was no settlement on Monday due to a US holiday.
In China, there are further signs of lockdowns easing,stoking mobility. Shanghai will let people in areas deemed low risk for Covid-19 leave housing compounds, as the key hub moves to dismantle the last remaining curbs that confined most of its 25 million residents to their homes for two months. “The China story is supportive,” ING’s Patterson said. “We need to be mindful that we could certainly see further lockdowns over the course of the year given that China continues to pursue its Covid Zero policy.”
Retrieved from:
https://blinks.bloomberg.com/news/stories/RCQ90MT1UM0W