Oil prices rise as EU agrees to ban Russian crude oil

By Zeynep Beyza Kilic

ANKARA (AA) - Oil prices increased on Tuesday after the European Union (EU) agreed on a partial ban on Russian crude oil, raising concerns of tight global oil supply.

International benchmark Brent crude was trading at $119.88 per barrel at 0608 GMT for a 1.94% increase after closing the previous session at $117.6 a barrel.

American benchmark West Texas Intermediate (WTI) was at $119.11 per barrel at the same time for a 1.65% gain after the previous session closed at $117.18 a barrel.

EU leaders met on Monday to discuss a sixth sanctions package which included a partial ban on Russian oil. The meeting led to an agreement to cut 90% of oil imports from Russia by the end of 2022.

EU leaders agreed "that the sixth package of sanctions against Russia will cover crude oil as well as petroleum products delivered from Russia into member states, with a temporary exception for crude oil delivered by pipeline."

The embargo will cover seaborne oil and partially exempt pipeline oil, which Hungary will use to transport oil by the Southern Druzhba pipeline.

The ban will be finalized after agreeing on the technical details later in the week.

Meanwhile, as China gets ready to lift quarantine measures in June, oil demand is expected to go up thus further straining the market which is battling short global supply.