(BFM Bourse) – Oil prices climbed more than 3% after the European Commission proposed a gradual embargo on imports of Russian oil. This decision is part of a sixth round of sanctions against Russia due to the offensive launched in Ukraine.
The European Commission on Wednesday proposed a phased EU embargo on Russian oil and petroleum products as part of a new sanctions package against Moscow, as the Russian military struck sites far west of the country For this sixth package of sanctions against Russia, Brussels also proposes to exclude three additional Russian banks – including Sberbank, by far the largest institution in the country – from the Swift international financial system.
The European Union also announced that it would “considerably increase” its military support for Moldova, in the face of fears that the conflict would spread to this small former Soviet republic of 2.5 million inhabitants, landlocked between Ukraine and Romania. “We will gradually abandon Russian deliveries of crude oil within six months and those of refined products by the end of the year,” Commission President Ursula von der Leyen said on Wednesday in Strasbourg.
Other supply routes under study
This embargo must be put in place in such a way as to allow other supply routes, she said, while Russian oil accounts for around a quarter of the EU’s black gold imports. Germany could experience “disturbances” in its oil supply, the German economy minister warned on Wednesday.
“We cannot guarantee in this situation that there will be no disruptions” in oil supplies in Germany, said Robert Habeck, during a press conference in Meseberg north of Berlin, warning that ” prices can also increase significantly over a 180-day period.”
Mr. Habeck, also vice-chancellor, however assured that Germany would be able “to support the embargo on oil as a nation” while the country has drastically reduced its oil dependence on Russia in recent weeks.
According to several European officials, the Commission’s draft provides an exemption for Hungary and Slovakia, two landlocked countries totally dependent on deliveries by the “Druzhba” pipeline, which will be able to continue their purchases from Russia in 2023. Hungary has However, Wednesday rejected the proposal for a gradual European embargo on Russian oil “in its current form”, judging that such a measure “would completely destroy the energy security” of the country.
The Brussels project “cannot be supported in its current form. With all responsibility, we cannot vote for it,” Foreign Minister Peter Szijjarto said in a video message posted on his Facebook page.
Brent and WTI up 3% despite US stocks
A barrel of Brent for delivery in July traded at 108.63 dollars around 4:40 p.m., up 3.14% from the previous day. The barrel of WTI for June delivery took him 3% to 106.44 dollars in reaction to these future retaliatory measures, taking precedence over the surprise rise in American stocks last week.
Commercial crude oil reserves in the United States increased by 1.3 million barrels during the week ended April 29, a surprise for the market, which was expecting a decline of 600,000 barrels. U.S. crude inventories stood at 415.7 million barrels, according to figures released Wednesday by the U.S. Energy Information Agency (EIA).
Sabrina Sadgui, with AFP
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