WTI crude futures rose more than 3%, breaking above $110 today. Amid concerns about oil tightness
As of 10:11 p.m. Thai time, the West Texas Intermediate Crude Oil (WTI) contract was delivered in June. Trading on the NYMEX was up $3.95, or 3.72 percent, to $110.08 a barrel.
Oil prices were boosted as the European Union (EU) prepares to impose sanctions on Russian oil. including the closure of the Ukrainian gas pipeline from Russia to Europe.
Ukraine has closed the main routes of gas transportation to Europe. By stating that it was intervened by Russian forces. As a result, Russian gas supplies to Europe have dropped by a quarter and are the first time that gas supplies have been halted since Russia’s military invasion of Ukraine.
Ursula von der Leyen, President of the European Commission (EC), the EU’s executive body, has asked EU members to suspend imports of Russian crude and refined oil products in response to Russia’s use of military force. The invasion of Ukraine, however, required the approval of all 27 EU members.
The International Energy Agency (IEA) said the IEA may drain more oil into the market in the future. if necessary
“If there is a need in the future and the governments of the members of the group agreed We will drain the oil once more to resolve the tightness,” said IEA Executive Director Fatih Birol.
Mr Birol said Russian oil production will drop at least 3 million barrels per day in the second half. But the world will not suffer from an oil shortage.
The IEA is made up of 31 member states, with the largest being the United States, United Kingdom, Germany, France, Canada, Japan and South Korea.