Oil prices rose on Wednesday as the European Union - the world's biggest trading bloc - announced a plan to phase out oil imports from Russia, offsetting concerns about falling demand in China, the world's biggest oil importer.
Brent crude futures rose $2.94, or 2.8 percent a barrel, to $107.91 a barrel at 7.46 p.m. BST, after trading was light due to public holidays in China and Japan.
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Oil jumps 3% after EU announces plan to ban Russian crude oil production
European Commission President Ursula von der Leyen on Wednesday proposed a gradual ban on Russian oil imports and sanctions on Russia's biggest banks in the wake of the war in Ukraine to further isolate Moscow.
Oil prices will rise Source.
Brent and West Texas crude oil rose $3 a barrel in early trading on Wednesday (Getty Images)
4/5/2022
Oil prices rose on Wednesday after the European Union - the world's biggest trading bloc - announced plans to phase out oil imports from Russia, offsetting concerns about falling demand in China, the world's biggest oil importer.
Brent crude futures rose $2.94, or 2.8 percent a barrel, to $107.91 a barrel by 07:46 GMT, amid light trading due to holidays in China and Japan.
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Oil prices fall on fears over China's economic growth
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Oil prices rise to 3-week high as Ukraine crisis deepens
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Moscow's decision to cut gas supplies to Poland and Bulgaria. EU countries move to ban Russian oil
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British trader accused of manipulating oil prices to get €600 million
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US West Texas Intermediate crude futures also rose $3.02, or 3 percent, to $105.43 a barrel.
European Commission President Ursula von der Leyen on Wednesday proposed a gradual ban on Russian oil imports because of the war in Ukraine and sanctions on Russia's biggest banks to further isolate Moscow.
The measures proposed by the European Commission president include liberalising Russian crude oil and refined products for six months until the end of 2022. Von der Leyen promised to reduce the impact on the European economy.
US crude oil and fuel inventories declined last week, market sources said, citing data from the American Petroleum Institute.
According to the sources, crude oil inventories fell by 3.5 million barrels in the week ending 29 April.
This exceeded expectations in a Reuters poll, which estimated a decline of 800,000 barrels. The US government will release the inventory data on Wednesday.
Oil prices fell by more than 2% in the latest trading session as an extended shutdown in China to combat Covid-19 led to the cancellation of May Day travel plans, adding to demand concerns.
OPEC. large surplus by 2022
Meanwhile, the OPEC+ alliance today (Wednesday) forecast a surplus of 1.9 million barrels per day in 2022, 600,000 barrels per day more than previous estimates, as oil demand growth is expected to slow this year, according to a report seen by Reuters.
The report, ahead of today's (Wednesday) meeting of the OPEC Plus Joint Technical Committee, also expects oil stocks in the final quarter to be slightly higher than the 2015-2019 average, according to the Organization for Economic Cooperation and Development.