© Reuters. FILE PHOTO: Tanks are seen at Marathon Petroleum’s Los Angeles Refinery, which processes domestic and imported crude, in Carson, California, U.S., March 11, 2022. Image taken this day March 11, 2022. Image taken by drone. REUTERS / Bing Guan / P File
By Noah Browning
LONDON (Reuters) – Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see if a planned meeting of the European Union would strike a deal to ban imports of its oil. Russian or not.
Futures for July, which expires on Tuesday, were up 54 cents, or 0.5%, at $119.97 a barrel at 0912 GMT. Brent for August delivery was more active, up 69 cents, or 0.6%, to $116.25 a barrel.
US West Texas Intermediate (WTI) crude oil futures rose 62 cents, or 0.5%, to $115.69 a barrel, extending solid gains achieved last week.
The EU will meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, what Moscow calls a “special military operation”.
“The macro landscape is constantly changing and that will determine how much crude demand improves over the next 12 months,” said Edward Moya, senior market analyst at OANDA.
“Geopolitics still matter but much of the impact of Europe’s reduced dependence on Russian energy has already been priced in.”
EU governments disagreed on an embargo on Russian oil on Sunday but will continue to negotiate an agreement to ban shipping by sea while allowing shipping by pipeline, ahead of the summit peaked on Monday afternoon, officials said.
Analyst Leona Liu said: “It is still quite difficult for the European group to reduce its energy dependence on Russia in the near term. That suggests, an immediate import ban is less feasible. and demand could keep oil prices up in the near term.” at DailyFX based in Singapore.
Any further ban on Russian oil would tighten the already tight crude oil market amid rising demand for gasoline, diesel and jet fuel ahead of the peak summer demand season. in the United States and Europe.
Affirming market tightening, the Organization of the Petroleum Exporting Countries and its allies including Russia, a group dubbed OPEC+, will reject Western calls to speed up production growth amount when they meet on Thursday. Six OPEC+ sources told Reuters.