Oil prices increased by $110 after the EU proposed a ban on Russian oil

Oil prices rose to 109.70 on May 4 after the head of the European Commission proposed an oil embargo on Russia.

At 14:00 GMT, international benchmark Brent oil was rated at US$108.63 per barrel, up 3.49 percent from the previous session’s cost of US$104.97 per barrel.

The US benchmark West Texas Intermediate (WTI) was traded at $106.14 a barrel simultaneously, up 3.64% after the previous session closed at $102.41 a barrel.

The commission proposes “a complete ban on imports of all Russian maritime and pipeline oil, crude and refined,” European Commission President Ursula von der Leyen said during France’s European Parliament plenary session.

Upon approval, the crude oil ban would take effect six months later and ban refined petroleum products by the end of the year.

The sanctions “will maximize pressure on Russia” and the delay would give the bloc a chance to “minimize collateral damage,” von der Leyen said.

The EU imported around 30% of Russian crude oil in 2021, according to the International Energy Agency (IEA). Within the European Union, Germany buys more Russian oil, at 555,000 barrels a day in 2021, according to the IEA.

If the EU is to approve such a measure, other countries would be encouraged to be to fill in the gap left by Russia. Brazil, for example, is currently a small exporter of crude oil to European nations. Would that change in the future if Europe needs to secure its oil supply from other countries?

See below how did Brazilian crude oil exports look like in 2021 and 2022 so far to a few key European trade partners. The data are from the Brazilian National Waterway Transportation Agency (Antaq).

Brazilian Crude Oil (HS 2709) Long Haul Exports to Europe | 2021 – 2022 | WTMT

Source: Antaq

Source: O Petróleo

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https://opetroleo.com.br/precos-do-petroleo-sobem-us-110-apos-ue-propor-proibicao-do-petroleo-russo/

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