A sticker reads Crude Oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. Picture taken November 22, 2019. REUTERS/Angus Mordant
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- EU to resume talks on Russian oil embargo plan this week
- Bulgaria says it will veto Russia’s ban in the absence of an “exemption”.
- The G7 countries have pledged to ban or phase out Russian oil
- Saudi cut crude oil prices to Asia and Europe in June
SINGAPORE, May 9 (Reuters) – Oil prices slid along with stock markets in Asia on Monday, sparked by fears a global recession could dampen oil demand, with investors eyeing the European Union’s talks of a Russian oil embargo , which is expected to limit global supply .
Brent crude fell 28 cents, or 0.3%, to $112.11 a barrel by 0153 GMT.
US West Texas Intermediate crude was at $109.36 a barrel, down 41 cents, or 0.4%.
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“Broader risk-off sentiment fueled by recession fears and China’s lockdowns are the main factors dragging oil prices down,” said Tina Teng, an analyst at CMC Markets.
Global financial markets are also being spooked by concerns over interest rate hikes and extended COVID-19 lockdowns in China, which are hurting the world’s second largest economy.
“China’s ongoing lockdowns may continue to weigh on near-term oil prices,” Teng said. A price cut by Saudi Arabia also reflected concerns about global oil demand, she said.
Saudi Arabia, the world’s largest oil exporter, slashed June crude prices for Asia and Europe on Sunday. Continue reading
Last week, Brent and WTI rose for the second straight week on supply concerns after the European Commission proposed a phased embargo on Russian oil as part of its toughest sanctions package yet over the conflict in Ukraine. The proposal requires a unanimous vote by EU members. Continue reading
But Bulgaria’s Deputy Prime Minister said late Sunday that the country would veto EU oil sanctions against Russia if it doesn’t get an exemption from the proposed embargo. Continue reading
“Talks will continue tomorrow, including on Tuesday, a meeting of leaders may be needed to conclude them. Our position is very clear. If there is an exemption for some countries, we want to get an exemption as well,” Vassilev told national BNT television.
Bulgaria had previously said it would seek an exemption from Russia’s proposed oil ban if such opt-outs were allowed, but it was not clear whether it was seeking a full exemption or a delay similar to that proposed for Hungary, Slovakia and Friday the Czech Republic. Continue reading
The exceptions “will definitely make the sanctions less effective,” Teng said.
On Sunday, the G7 countries pledged to ban or phase out Russian oil imports, and Washington imposed new sanctions on Gazprombank executives and other companies. Continue reading
Japan, part of the G7 and one of the top five crude oil importers in the world, will ban Russian crude oil imports “in principle”, Prime Minister Fumio Kishida said on Sunday. Continue reading
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Reporting by Florence Tan; Editing by Tom Hogue
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