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Oil prices rise after EU proposes ban on Russian oil imports

NEW YORK
2022-05-06 04:16

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NEW YORK, May 5 (Xinhua) -- Oil prices rose on Thursday following a strong rally in the prior session, after the European Union (EU) unveiled a plan to phase out Russian oil.

The West Texas Intermediate (WTI) for June delivery added 45 cents, or 0.4 percent, to settle at 108.26 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery increased 76 cents, or 0.7 percent, to close at 110.90 dollars a barrel on the London ICE Futures Exchange.

European Commission President Ursula von der Leyen said Wednesday that the EU would phase out Russian supply of crude oil within six months and refined products by the end of the year. The plan is part of a sixth package of sanctions targeting Moscow over its military operation in Ukraine.

The news triggered concerns over tight supplies. The U.S. crude standard and Brent jumped 5.3 percent and 4.9 percent, respectively, on Wednesday.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, said on Thursday that they would stick to existing plans for modest oil production increases in June despite surging crude prices.

The alliance reconfirmed "the decision to adjust upward the monthly overall production by 432,000 barrels per day for the month of June 2022," according to a statement released after the 28th OPEC and non-OPEC Ministerial Meeting.

Meanwhile, a strong U.S. dollar presented a headwind for oil prices. The dollar index, which measures the greenback against six major peers, jumped 1.14 percent to 103.7540 in late trading on Thursday. Historically, the price of oil is inversely related to the price of the U.S. dollar.
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