New York, May 7, 2022 (AFP) – Oil remained high this Friday (6), still driven by the project of embargo on Russian oil by Europe, even when Hungary imposes obstacles.
A barrel of North Sea Brent for July delivery rose 1.34% to $112.39.
A barrel of US West Texas Intermediate (WTI) for June rose 1.39% to $109.77.
During Wednesday’s presentation of a sixth round of sanctions against Russia, European Commission President Ursula von der Leyen proposed a progressive ban on oil imports.
Hungary opposes this measure on the grounds that it would “completely destroy the energy security” of the country. Hungary is totally dependent on Russian oil and an embargo would amount to “a nuclear bomb on its economy”, its premier, Viktor Orban, said on Friday.
“The European Union, with its unanimity rules, will never achieve a full application of the embargo” for all its members, “but what it will do at the very least will represent a strong reduction and leave a mark” for Russia, commented Bill O ‘Grady, from Confluence Investment.
“If no agreement is reached this weekend, I should convene an extraordinary meeting of EU foreign ministers next week, after Europe Day,” warned European diplomacy chief Josep Borrell.
These expectations come at a time when the market was tense once again this week especially for refined products, while US refiners did not return to full production from the previous week, the analyst pointed out.
“At the same time, signs of a weakening world economy are multiplying”, which could affect demand, evaluated Stephen Brennock, from PVM Energy.
“Nevertheless, oil should have no trouble staying above the symbolic level of $100 a barrel, as long as demand-related fears are overshadowed by those related to the supply deficit,” the analyst explained.