August 7, 2022
oil prices

Oil is easing after previously soaring due to Russian sanctions against EU companies

Early Asian trade on Thursday saw oil prices fall after surging more than 5% the previous session in response to new Russian sanctions on some European gas companies.

Russia sanctioned 31 enterprises headquartered in countries that placed sanctions on Moscow following Russia’s February invasion of Ukraine.

At the same time, Russian gas flows to Europe via Ukraine plummeted by a fifth, causing market unrest. It was the first time since the invasion that exports through Ukraine had been disrupted.

By 0013 GMT, Brent crude futures had dropped 9 cents to $107.42 per barrel. WTI crude futures have dropped 13 cents to $105.58 a barrel.

oil prices

Prices have surged more than 35% this year, boosted by supply fears following Russia’s invasion of Ukraine in February.

The European Union is still negotiating a Russian oil embargo, which analysts believe would tighten the market and disrupt trade patterns. The vote requires unanimous approval, but it has been postponed due to Hungary’s staunch resistance.

Concerns about demand destruction in China, which is attempting to contain the spread of the coronavirus, have curbed price hikes.

 

Leave a Reply

Your email address will not be published.