CRUDE OIL PRICES CLIMB AHEAD OF EU SANCTION DEALS

Crude oil prices increase ahead of  EU sanction deals - Crude oil prices rose to the highest price in two months yesterday (Monday, 30/5/2022), as the European Union awaited a possible agreement to boycott oil from Russia. The European Union plans to impose sanctions on Moscow for its invasion of Ukraine and the oil boycott is one of six sanctions packages to be imposed.

The price of West Texas Intermediate (WTI) crude oil closed up half a percent in the area of ​​$117.16 per barrel.

The European Union will hold a two-day meeting to discuss six packages of sanctions to be imposed on Russia for its invasion of Ukraine, which Moscow calls a "special operation" to disarm its neighbour.

If the European Union imposes sanctions on Russia's oil boycott, the supply shortage in the market will be even tighter amid rising demand for fuels such as gasoline, diesel and airplane fuel in connection with the holiday season in the United States and Europe.

There has not been an agreement on the embargo on Russia's oil among members of the European Union, but talks about it are still ongoing. For now, the possibility of an agreement to embargo oil shipments by sea is being discussed, while distribution via land pipelines is still possible.

If the sanctions are agreed, it means Hungary, Slovakia and Czechia will still be able to receive Russian oil via the Druzhba pipeline for some time until alternative supplies can be arranged.