Oil prices closed higher on Thursday (28) driven by the change in posture of Germany, now open to an embargo on Russian exports of hydrocarbons.
The price of a barrel of North Sea Brent for June delivery rose 2.15% to $107.59.
Meanwhile, a barrel of West Texas Intermediate (WTI) for delivery over the same period rose 3.27% to $105.36, a 10-day high on the New York Stock Exchange.
The news from Germany “allows us to get out of this alley we were in a few days ago,” explained Phil Flynn of Price Futures Group. “The market was expecting a catalyst.”
According to The Wall Street Journal, the German representation in the European Union reported that the country no longer opposes an embargo.
Germany would have the condition that it be implemented progressively to give it time to find alternative sources of supply.
According to the newspaper, a formal agreement could take place next week.
The European energy ministers will meet on May 2 in an “extraordinary session”, announced the French Minister of Ecological Transition, Barbara Pompili.
The meeting was set to address the Russian suspension of gas deliveries to Poland and Bulgaria.
The President of the European Commission, Ursula von der Leyen, said that these two countries will be supplied “by their neighbors in the European Union”.
The main European natural gas futures contract, TTF, fell 8% on Thursday.
“As Germany approaches a total embargo, Russia could become more aggressive in suspending its supplies,” anticipated Edward Moya of Oanda.
Moreover, according to Kpler analysts, China has recently favored Iran over Russia to buy oil, despite attractive prices offered by Moscow.
“The US economy remains solid” despite an unexpected contraction of GDP in the first quarter (1.4% in the annual projection), a fact known this Thursday, highlighted Moya. “Even the increasingly strong dollar cannot stop the rise in prices” of oil, he pointed out.