Crude oil futures rallied on Wednesday after the European Union (EU) member states agreed to ban 90 percent of Russian oil imports by the end of this year as part of the latest Ukraine-related sanctions against Moscow. As of 1725 hours GMT, the price of Brent, the international benchmark for two-thirds of the world’s oil, surged by $1.48 (+1.28 percent) to $117.08. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $1.24 a barrel (+1.08 percent) to $115.91. The price for Opec Basket increased from $120.01 to $122.94, showing an increase of $2.93 (+2.44 percent). The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey.
The price of Russian Sokol dipped to $102.19 a barrel with a 5.68 percent decrease and Arab Light prices witnessed a decrease of 6.57 percent to reach $113.27 a barrel. The jump in oil prices came after EU leaders reached a deal to ban the import of Russian oil and petroleum products by sea. The EU member states a day earlier agreed to ban 90 percent of Russian oil imports by the end of this year. The embargo, which had been debated for nearly a month, targets Russian crude delivered by sea, while allowing a temporary exemption for pipeline fuel, to win the support of Hungary and other landlocked countries. The Czech Republic has reportedly been granted an 18-month exemption from a ban on the resale of oil products. Meanwhile, Bulgaria has been excluded from the embargo until the end of 2024. Meanwhile, authorities in Beijing and Shanghai loosened some of the strict coronavirus restrictions in those Chinese cities, raising the prospect of a pick-up in demand for energy.