Brent ended up 7.12% at $115.62 and WTI ended up 7.08% at $112.12.
Oil prices jumped more than 7% on Monday, with European Brent and American WTI both crossing the threshold of $110 a barrel, boosted by the prospect of a possible European embargo on Russian oil exports.
The barrel of Brent from the North Sea for delivery in May closed sharply up 7.12% at 115.62 dollars, its highest level in ten days.
The barrel of West Texas Intermediate (WTI), the benchmark American variety, for delivery in April, ended up 7.08%, at 112.12 dollars, above 110 dollars for the first time in almost two weeks.
European Union foreign and defense ministers met in Brussels on Monday to discuss new sanctions against Moscow.
Upon his arrival, Irish Foreign Minister Simon Coveney said he was “open” to the possibility of restrictions targeting the Russian energy sector, so far relatively spared. Given the situation in Ukraine, he explained, it would be appropriate “to interrupt the normal trade” of oil and natural gas with Russia.
He echoed Ukrainian President Volodymyr Zelensky, who on Monday called on the European Union to refuse energy resources from Russia.
“The question of an oil embargo is not whether we want it or not, but to what extent we are dependent on this oil,” retorted his German counterpart, Annalena Baerbock.
Germany and the Netherlands, by far the EU countries most dependent on Russian supplies, receive an average of 1.1 million barrels per day between them.
The Kremlin meanwhile warned earlier on Monday that a potential EU embargo on Russian oil would hit ‘everyone’, as the European Union is set to study, at a meeting, the possibility of new sanctions against Moscow .
“The possibility of additional sanctions against Russia, already applied by Western buyers” constitutes “a colossal risk” and could further boost prices, confirms Stephen Innes of SPI Asset Management.
Waiting for OPEC
“I think it will be hard for the whole EU to accept” an embargo, said James Williams, of the firm WTRG Economics.
For Andrew Lebow, a partner at the firm Commodity Research Group, only an even more marked deterioration in the conflict could “perhaps make the Germans move” on the subject.
A total EU embargo would deprive Russia of outlets for 2.5 to 3 million barrels per day, according to the sources, and Europe of a quarter of its black gold needs.
“It can’t be replaced overnight,” warns Andrew Lebow. “It would take time and, in the meantime, stocks are already very low.”
Embargo or not, the melting of Russian oil deliveries to Europe is already at work, with public authorities, private companies and carriers often trying not to approach them, for fear of tougher sanctions or being vilified. by opinion.
Half a million barrels less currently due to this phenomenon, Europe could see volumes decrease by one million to 1.5 million barrels per day in April, according to Andrew Lebow.
“Demand would rise for oil from other OPEC+ countries,” namely members of the Organization of the Petroleum Exporting Countries and their allies in the OPEC+ agreement, explained in a note, Susannah Streeter, d ‘Hargreaves Lansdown.
“But the problem is that they are already not at the level today,” she added, recalling that OPEC+ had missed its production target by more than a million barrels a day. in the month of February.
The world’s largest crude oil exporter and OPEC leader, Saudi Arabia, warned on Monday of the risk of a drop in its supplies, due to attacks by rebels in neighboring Yemen on its oil installations.
The country announced on Sunday a “temporary reduction” in its oil production at one of the giant Aramco’s facilities, hit by an attack by Houthi rebels in Yemen.
The Houthis have launched several nightly drone and missile attacks on targets in Saudi Arabia, with the country leading a military coalition in Yemen that has backed power against the Iran-backed Houthis since 2015.
“Saudi Arabia will not take responsibility for any shortage of oil supply in world markets in light of attacks on its oil facilities,” the foreign ministry said.
“The attack is another unfortunate reminder of the uncertainty currently affecting global oil markets,” said Michael Hewson, analyst at CMC Markets.