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Oil prices are jumping amid growing supply concerns

Europe's dependence on Russia should accelerate the transition to energy

New York [US]March 22 (ANI / Xinhua): Oil prices jumped on Monday as reports that the European Union (EU) was considering a ban on Russian energy raised concerns about oil supplies.

West Texas Intermediate (WTI) with April delivery added $ 7.42, or 7.1 percent, to $ 112.12 a barrel on the New York Mercantile Exchange. Brent crude for May delivery rose $ 7.69, or 7.1 percent, to close at $ 115.62 a barrel on London’s ICE futures exchange.

“The reason for the growth is the news that the EU is apparently considering a ban on oil imports from Russia,” Carsten Fritsch, an energy analyst at Commerzbank Research, said in a note on Monday.

The EU is heavily dependent on Russian oil, “covering almost 30 percent of its import needs with crude oil from Russia,” he said, adding that “in the case of diesel, Russian oil accounts for as much as 80 percent of its net imports.” “This means that large quantities will have to be obtained elsewhere, which will further tighten the market,” said Fritsch.

In its monthly report released on Wednesday, the International Energy Agency (IEA) said that “the prospect of large-scale disruptions in Russian oil production threatens to create a global shock in oil supplies.” on the day of Russian oil production may be suspended from April, “because sanctions are being imposed and buyers are avoiding exports.” For the week ending Friday, WTI and Brent fell 4.2 percent on first-month contracts. (ANI / Xinhua)

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