Oil Prices Hit $110 As Europe Prepares To Ban Russian Crude

Related stories

Ranked: Top 15 Countries by Military Budgets in 2025

Key Takeaways The U.S. military budget in 2025 ($962 billion) remains...

Charted: Ukraine Is Russia’s Third Deadliest War

Key Takeaways The full-scale invasion of Ukraine has become...

US government warns: Green Cards and Visas will be revoked if …

The US Citizenship and Immigration Services (USCIS) has issued...

Ganduje’s Resignation: APC Govs React, Say Move Part Of Internal Evolution

By Kolawole Ojebisiø The All Progressives Congress governors, under the...
  • In one month, the European Commission proposes to ban all shipping, brokerage, insurance and financing servers related to the import and transport of Russian oil.
  • 95% of the world’s taker liability coverage goes through the London-based International Group of P&I Clubs.
  • WTI futures were up 5% on the day at 02:00 PM ET.

Oil soared to $110 mid-Wednesday as details on the European Union’s plans to ban Russia oil continue to be revealed and digested by the market.

Up 4.75% on the day as of 1:53 p.m. EST, just under $110 per barrel, oil prices are responding to additional details on European Union plans to embargo Russian oil, including through sanctions on insurance companies.

In one month, the European Commission proposes to ban all shipping, brokerage, insurance and financing servers related to the import and transport of Russian oil, Reuters cited an unnamed EU source as saying on Wednesday.

There is a global element to the proposed ban related to export of Russian oil in order to make it more difficult for Russia to seek out alternative buyers. However, shipping and financing, specifically, the proposed ban would only be put in place for European Union companies, Reuters reported.

This aspect of the proposed ban represents a severe measure, as some 95% of the world’s taker liability coverage goes through the London-based International Group of P&I Clubs, according to Bloomberg.

The market appears to be assessing the EU moves as far more serious than previous talk, with Bloomberg also noting the Iranian precedent, when the U.S. and the EU managed to stymie Iran’s oil exports by targeting insurance.

Oil is also responding to rumblings from a meeting earlier today of OPEC+ and the Joint Technical Committee (JTC), which signaled the likelihood that no further oil output increases beyond the previously discussed 423,000 bdp commitment for June would be forthcoming.

These issues are now outweighing fears of demand destruction coming out of China, where COVID lockdowns continue, with no concrete indications of easing in the immediate term.

NB: Charles Kennedy wrote this article for Oilprice.com

Charles Kennedy
Charles Kennedyhttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
Ranked: Top 15 Countries by Military Budgets in 2025Charted: Ukraine Is Russia’s Third Deadliest WarUS government warns: Green Cards and Visas will be revoked if ...W'Bank Lists Nigeria, Ukraine, Mali, Libya, Others As Economies Where People Live On Less Than $3/DayGanduje's Resignation: APC Govs React, Say Move Part Of Internal EvolutionHow Nigeria Can Achieve Trillion-dollar Economy --- AfDB[Video] Jonathan Opens Up: How Yar'adua's Aide Withheld Handover Letter To Nat'l Assembly To Create ChaosGambari Mourns, Pays Heartfelt Tribute to Ex-Gov Cornelius Adebayo[Photos] Wike, Fubara, Amaewhule Reunite at Burial in Rivers, Signaling Peace After Tinubu’s MediationFLASH BACK: How Aminu Dantata, Dangote's Great Uncle, Wished For Death Almost 3 Years Ago[VIDEO] Wike, Fubara: Wike supporters mocking FubaraTrump’s Confusing Message About Iranian OilTrump says he’s terminating trade talks with Canada over tax on tech firmsList of Top 5 Countries That No Longer ExistMonday Okpebholo, Ifeanyi Uba's Seats: INEC Unveils Timetable for Bye-Elections as Voter Registration Resumes August 18
X whatsapp