Oil prices are falling as fears ease that the European Union will impose an embargo on Russian oil.
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Oil prices drop below $114 a barrel
Oil prices fell below $114 a barrel, today, Tuesday, to give up part of the gains that… reached 7% Yesterday, with European Union member states divided over a possible Russian oil embargo, persistent risks of supply shortages limited prices.
The bloc’s foreign ministers were divided over whether to join the United States in imposing sanctions on Russian oil, with some countries, including Germany, saying the bloc is too dependent on Russian fossil fuels to afford such a step.
Brent crude fell $1.92, or 1.7%, to $113.70 a barrel. West Texas Intermediate crude fell $2.82, or 2.5 percent, to $109.3.
Oil prices also fell with the rise of the US dollar, following Statements by the Federal Reserve Chairman Jerome Powell, on Monday, indicated the possibility of a sharper tightening of monetary policy than expected.
A strong dollar increases the cost of crude to holders of other currencies and weakens risk appetite.
Earlier this month, Brent crude recorded $139 a barrel, the highest price since 2008.
And Saudi Arabia said, on Monday, that it will not be responsible for any shortage in global supply following the recent military operation carried out by the Yemeni armed forces.
The latest data on US crude oil inventories will be the focus of attention, later today. Analysts do not expect any change in crude oil prices.