#Algeria : Oil prices increased on Tuesday to levels not seen since the peaks reached in early March, galvanized by the announcement of the European Union finally achieving an embargo on the bulk of Russian oil, following weeks of negotiations.
The barrel of American West Texas Intermediate (WTI) for delivery the same month, climbed 3.26% to 118.82 dollars.
Earlier, the price of a barrel of Brent rose to 124.10 dollars, and that of American WTI to 119.43 dollars, the highest for more than two months.
On March 7, Brent peaked at $139.13, and WTI at $130.50 a barrel, levels not seen since the 2008 financial crisis.
The leaders of the 27 EU countries reached an agreement on Monday that would see them cut their imports of Russian oil by some 90% by the end of the year in order to dry up funding for Moscow’s war in Ukraine. .
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According to the agreement, purchases sent by sea will be interrupted, «while pipeline supplies will be phased out»explains Ipek Ozkardeskaya, an analyst at Swissquote Bank.
«So Europe will cut two-thirds of its oil imports from Russia, which will cost Russia regarding $10 billion in lost revenue.»says the analyst.
The European Union was still importing 3.4 million barrels of crude oil and petroleum products per day from Russia in April, according to the International Energy Agency.
The EU must find new suppliers to compensate for this loss in the coming months, explains Carsten Fritsch, an analyst at Commerzbank.
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According to the analyst, the EU would seek «intensively from suppliers in West Africa»citing an increase in shipments from Nigeria, Angola and Cameroon to Europe.
«Oil deliveries from North Africa to Europe have also soared», says Fritsch. Deliveries from the United Arab Emirates are also expected to jump this summer.
The news also suggests «that the inflation situation in Europe, and in the West, might get worse before it gets better»met en garde Ipek Ozkardeskaya.
The inflation rate in the euro zone also broke a new record in May, at 8.1% over one year, Eurostat announced on Tuesday.
Remains an unknown in the equation: «Russia’s reaction to the unanimous EU boycott»underlines Tamas Varga, analyst at PVM Energy.
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If Russian President Vladimir Putin «decides to retaliate and halt pipeline exports and natural gas shipments to Europe, it will be possible to reverse the highs reached in March»warns the analyst. «The economic war between Russia and Europe escalates».
Russian gas company Gazprom announced on Tuesday that it suspended gas deliveries to Dutch supplier GasTerra in the face of its refusal to pay in rubles.
The Dutch TTF, the benchmark for the European natural gas market, was trading at 94.30 euros per megawatt hour (MWh) on Friday, increasing by almost 7%, but remaining at levels barely above those before the invasion of Ukraine. by Russia.
