SULAIMANI (ESTA) — Oil prices settled higher on Friday after an early decline as investors covered short positions ahead of the long weekend and on news that the European Union might phase in a ban on Russian oil imports.
Brent futures settled up $2.92 at $111.70 a barrel as of 0730 GMT.
U.S. West Texas Intermediate futures closed $2.70 higher at $107 a barrel.
The New York Times reported that the European Union was moving toward adopting a phased-in ban of Russian oil, to give Germany and other countries time to arrange alternative suppliers, according to Reuters.
A phased-in ban would force European buyers “to seek alternative sources, some of which in the near term is being met by Strategic Petroleum Reserve releases, but in the future, more supplies coming out of the ground will be required,” Reuters quoted Andrew Lipow of Lipow Oil Associates in Houston as saying.
The International Energy Agency had warned on Wednesday that roughly 3 million barrels per day of Russian oil could be shut in from May onwards due to sanctions or buyers voluntarily shunning Russian cargoes.
Major global trading houses are planning to curtail crude and fuel purchases from Russia’s state-controlled oil companies in May, Reuters reported.
Russia’s Energy Ministry said it was limiting access to its statistics on oil and gas production and exports.
