The price of Brent crude oil crossed the $110 per barrel mark on Thursday. North American WTI crude was trading at nearly $107. The two most traded types of crude oil rose by more than 2.5 percent after rumors began to circulate that the European Union might impose an embargo on Russian oil.
The American daily The New York Times reported that the European Union is moving closer to imposing a full embargo on oil imports from Russia, with Germany and other countries taking a few days to find alternative suppliers.
Embargo of Russian oil
The International Energy Agency on Wednesday warned that an end to Russian oil supplies to the European Union of about three million barrels a day could come in early May. This could happen as a result of the embargo, but also as a result of EU processors deciding to cut themselves off from Russian oil.
US oil supplies
The oil market could be clearer by the end of the week as options on US oil supplies to the European Union gradually expire. If traders take advantage of them, it will be a signal that the EU-27 intends to strengthen the inflow of oil from the US and that it is indeed moving towards a cut-off from Russia.