On Monday, oil prices hit a two-month high.
EU leaders finally agreed to embargo most Russian oil imports into the 27-nation bloc by the end of 2022.
Brent crude futures for July gained 63 cents to US$122.30 a barrel.
In a significant development, EU leaders have reached an agreement to embargo 90% of Russian oil imports into the 27-nation bloc by the end of 2022 as part of fresh sanctions.
However, the embargo only covers the oil transported by sea. The sanctions allow a temporary exemption to pipeline imports. The EU imports around 26% of its oil from Russia.
Earlier, oil prices rose above US$121 a barrel in overnight trade on Monday, hitting a two-month high. The spike came amid expectations that the European Union (EU) would finally reach an agreement to ban Russian oil imports.
Brent crude futures for July, which will expire on Tuesday, gained 63 cents to US$122.30 a barrel. WTI crude futures were trading at US$117.65 a barrel, up US$2.58 from Friday's close. There was no settlement on Monday due to a US public holiday.
"Agreement to ban export of Russian oil to the EU. This immediately covers more than two thirds of oil imports from Russia, cutting a huge source of financing for its war machine," European Council chief Charles Michel tweeted. "Maximum pressure on Russia to end the war,” Michel added.
Meanwhile, global sentiments also received a boost with further easing of COVID-19 curbs in China.
Here we discuss how a few major ASX-listed oil stocks are performing today:
Woodside Energy Group Ltd (ASX:WDS)
By 11:55 AM (AEST), WDS shares were trading at AU$30.100, down 0.430%.
Santos Ltd (ASX:STO)
By 11:55 AM (AEST), STO shares were trading at AU$8.32, up 1.40%.
Beach Energy Ltd (ASX:BPT)
By 11:55 AM (AEST), BPT shares were trading at AU$1.69, up 3.17%.
Karoon Energy Ltd (ASX:KAR)
By 11:55 AM (AEST), KAR shares were trading at AU$2.06, up 0.24%.
The embargo by the EU on sea imports from Russia is expected to further tighten the global crude oil market. The market was already facing pressure on account of post-COVID-19 demand recovery.
A range of factors such as limited fresh supply options, growing global demand, and rising risks to traditional supply could further lift oil prices this summer, according to experts.
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