OIL rallied as supply concerns took centre stage with the EU threatening to ban Russian supplies this year and US regional fuel inventories dropping to record lows.
Futures in New York climbed more than five per cent to settle at $107.81, while Brent closed above $110 for the first time since mid-April. The European Union said it plans to ban Russian crude and refined by the end of this year.
'This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined,' said European Commission President Ursula von der Leyen.
Adding to the sense of supply pressure, east coast diesel inventories fell to a record low as US refiners increasingly supply global markets in the absence of Russian product, according to data from the Energy Information Administration.
Europe is highly dependent on Russian crude, and some countries will find it easier to switch supply than others. Russia shipped about 720,000 barrels a day of crude to European refineries through its main pipeline to the region last year. That compares with seaborne volumes of 1.57 million barrels a day from its Baltic, Black Sea and Arctic ports.
Hungary and Slovakia, which have been opposed to a swift cutoff of Russian oil, will be granted a longer time frame - until the end of 2023 - to enforce the sanctions, according to people with knowledge of the matter.
SeaNews Turkey
Futures in New York climbed more than five per cent to settle at $107.81, while Brent closed above $110 for the first time since mid-April. The European Union said it plans to ban Russian crude and refined by the end of this year.
'This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined,' said European Commission President Ursula von der Leyen.
Adding to the sense of supply pressure, east coast diesel inventories fell to a record low as US refiners increasingly supply global markets in the absence of Russian product, according to data from the Energy Information Administration.
Europe is highly dependent on Russian crude, and some countries will find it easier to switch supply than others. Russia shipped about 720,000 barrels a day of crude to European refineries through its main pipeline to the region last year. That compares with seaborne volumes of 1.57 million barrels a day from its Baltic, Black Sea and Arctic ports.
Hungary and Slovakia, which have been opposed to a swift cutoff of Russian oil, will be granted a longer time frame - until the end of 2023 - to enforce the sanctions, according to people with knowledge of the matter.
SeaNews Turkey
