The prices of crude oil rose four per cent on Wednesday, after the European Union unveiled plans to phase out imports of Russian oil as part of sanctions for Russia’s invasion of Ukraine.
Brent crude futures rose $3.99, or 3.8 per cent, to $108.96 a barrel by 1121 GMT. West Texas Intermediate crude futures rose $4.05, or 4 per cent, to $106.46 a barrel, Reuters reported.
The development came immediately after the EU announced it is proposing to ban all oil imports from Russia by the end of the year.
On Wednesday, European Commission President Ursula von der Leyen announced that European Union countries would stop importing Russian oil in the next six months.
“We now propose a ban on Russian oil. “Let’s be clear, it will not be easy. But we simply have to work on it. We will make sure that we phase out Russian oil in an orderly fashion, to maximize pressure on Russia while minimizing the impact on our economies,” she said during a speech to the European Parliament on Wednesday.
“Crude oil supply would be phased out within six months, and imports of refined oil products by the end of 2022,” she added.
Russia is the world’s second-biggest crude oil exporter, according to the International Energy Agency (IEA).
Reuters quoted SEB chief commodities analyst, Bjarne Schieldrop, as saying “Russian oil is now ‘bad oil’.”
“This energy war of ‘good oil’ versus ‘bad oil’ has just started,” Mr Schieldrop said.
OPEC and its allies have agreed to meet on Thursday for crucial talks on monthly output for June 2022.
Any rise in price favours Nigeria which relies mostly on oil for its revenue and foreign earnings.
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