In order to reprimand Russia over Ukraine war, European Union (EU) leaders have finally decided to cut 90% oil imports from Moscow. The ban will be implemented by the end of the year. But the move seems to have triggered a spike in the prices of the commodity. The price of oil witnessed a hike in early Asian trade on Tuesday, media reports said. The Russian oil’s ban looks to tighten the global crude market, which was already under pressure due to the supply constraints.
The Brent crude futures for July rose 63 cents to $122.30 a barrel at around 0012 GMT. It will end on Tuesday. US West Texas Intermediate (WTI) crude futures were selling at $117.65 a barrel, which is up $2.58 from closure on Friday. As Monday was a US public holiday, there was no settlement.
Earlier, the European Union (EU) on Monday (May 30) agreed to ban most Russian oil imports, but not before some heavy haggling to strife compromise deal with Hungary which opposed the ban. Negotiations over banning Russian oil imports have been going on for weeks. A total embargo was fiercely opposed by Hungary PM Viktor Orban.
EU leaders meeting in Brussels hatched a compromise deal to exempt deliveries by pipeline from the ban, after Budapest warned halting supplies would wreck its economy.
“Agreement to ban export of Russian oil to the EU. This immediately covers more than two thirds of oil imports from Russia, cutting a huge source of financing for its war machine,” European Council chief Charles Michel tweeted during the summit. “Maximum pressure on Russia to end the war.”
EU chief Ursula von der Leyen said that the decision taken by the bloc “will effectively cut around 90 per cent of oil imports from Russia to the EU by the end of the year” as Germany and Poland had committed to renounce deliveries via a pipeline to their territory.
(With inputs from agencies)