Oil opens higher as EU members weigh Russian oil ban By Reuters

Oil opens higher as EU members weigh Russian oil ban By Reuters


© Reuters. FILE PHOTO: A Russian state flag flies on the top of a diesel plant in the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia March 10, 2019. Picture taken March 10, 2019. REUTERS/Vasily Fedosenko

Oil futures extended gains on Tuesday morning on news that some European Union members are considering imposing sanctions on Russian oil and as attacks on Saudi oil facilities sent jitters through the market.

Front-month West Texas Intermediate futures were up $2.21, or 1.97%, to $114.33 a barrel on NYMEX and futures were up $2.51, or 2.26%, to $118.23 a barrel on the Intercontinental Exchange (NYSE:) at 0014 GMT.

Both contracts had settled up more than 7% on Monday as the potential for more supply disruptions weighed on the market.

European Union foreign ministers are split on whether to join the United States in sanctioning Russian oil, with some countries including Germany arguing that the bloc is too dependent on Russia’s fossil fuels.

“The proposed ban is still some way from becoming policy because a significant number of EU nations oppose the ban,” analysts for Commonwealth Bank of Australia (OTC:) wrote in a note.

“Still, the fact that the ban is being discussed at all is a significant shift,” the note added.

At the same time, Saudi Arabia has warned it would not bear responsibility for disruptions to global oil supply following attacks on its oil facilities by Iranian-aligned Houthis.

The comments came after the group fired missiles and drones at Saudi oil facilities over the weekend, causing a temporary decline in refinery output.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source Link