SULAIMANI (ESTA) — Oil prices rose on Wednesday, buoyed by supply concerns as the European Union works on gaining support for a ban on Russian oil and as major producers warned they may struggle to fill the gap when demand improves.
Brent crude was up $2.73 to $105.2 a barrel at 0822 GMT, while U.S. West Texas Intermediate crude climbed $2.65 to $102.4 a barrel.
The EU has proposed an embargo on Russian oil, but a vote, which needs unanimous support, has been delayed as Hungary has dug in its heels in opposition and other European nations have voiced concerns that their economies could suffer, according to Reuters.
Reuters said the impact of the embargo could be limited if the ban is watered down to ease the concerns of eastern European members, but analysts said oil prices could still rise.
“Even if we do see some of the measures relaxed, it is likely that EU sanctions will still meaningfully reduce EU imports of Russian oil and refined products,” Reuters quoted Commonwealth Bank analyst Vivek Dhar as saying.
