Oil jumps amid reports of possible EU sanctions on Russian oil sector

By Sibel Morrow

ANKARA (AA) - Oil prices jumped on Monday over persistent supply concerns over the lack of progress in Russia-Ukraine talks and the risk of sanctions on the Russian oil industry by EU countries.

International benchmark Brent crude was trading at $111.10 per barrel at 0659 GMT for a 2.93% gain after closing the previous session at $107.93 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $106.31 per barrel at the same time for a 3.12% increase after the previous session closed at $103.09 a barrel.

Brent oil increased almost 3% in early trading on Monday over reports that EU countries are considering further embargoes, including sanctions on Russian oil exports.

This rise comes amid lingering talks between Ukrainian and Russian officials, which have failed to make progress on key concessions to date.

After its warning on the possibility of a loss of nearly 3 million barrels per day of oil in April due to sanctions on Russia, the International Energy Agency last week suggested that 2.7 million barrels per day of oil demand could be cut with 10 practical actions by governments and citizens in advanced economies in four months if fully implemented.

"The market is also keeping an eye on China, where a renewed outbreak of COVID-19 has resulted in some of the heaviest virus-related restrictions since early 2020," warned ANZ commodity strategist Daniel Hynes.