The prices of crude oil have, on Wednesday, risen by four percent after the European Union disclosed plans to phase out imports of Russian oil as part of sanctions for Russia’s invasion of Ukraine.
Brent crude futures rose $3.99, or 3.8 per cent, to $108.96 a barrel by 1121 GMT. West Texas Intermediate crude futures rose $4.05, or 4 per cent, to $106.46 a barrel, Reuters reported.
The development came immediately after the European Commission, President Ursula von der Leyen, on Wednesday proposed a phased oil embargo on Russia over its war in Ukraine, as well as sanctioning Russia’s top bank, in a bid to deepen Moscow’s isolation.
“Crude oil supply would be phased out within six months, and imports of refined oil products by the end of 2022.”
Russia is the world’s second-biggest crude oil exporter, according to the International Energy Agency.
Reuters quoted SEB chief commodities analyst, Bjarne Schieldrop, as saying “Russian oil is now ‘bad oil’.”
“This energy war of ‘good oil’ versus ‘bad oil’ has just started.”
It is expected to intensify efforts to bring down high inflation by raising interest rates and reducing its balance sheet.
Presently any increase in oil price will favor Nigeria which relies majorly on oil for its revenue.
