Bulgaria capitals

Oil rises after Russia cuts gas supplies to Poland and Bulgaria, worsens EU energy crisis

Singapore: Oil rose after Russia cut off natural gas supplies to Poland and Bulgaria, deepening Europe’s energy crisis as the war in Ukraine drags on.

West Texas Intermediate traded above $102 a barrel after rising 3.2% on Tuesday. Gas prices in Europe jumped after Russia cut off flows to Poland and Bulgaria, solidifying threats to cut off supplies to countries that refuse President Vladimir Putin’s demand to pay for fuel in roubles.

The energy market has been gripped by a tumultuous period of trading since Russia’s invasion of Ukraine in February. The US and UK have pledged to ban oil imports from the OPEC+ producer, but the EU has struggled to reach consensus on similar measures. The war continues, despite efforts for a ceasefire.

The energy market has been gripped by a tumultuous period of trading since Russia’s invasion of Ukraine in February. The US and UK have pledged to ban oil imports from the OPEC+ producer, but the EU has struggled to reach consensus on similar measures. The war continues, despite efforts for a ceasefire.

Oil crashed after Russian invasion of Ukraine

Russia demanded payments in rubles after Moscow was hit with a series of financial sanctions due to the war in Ukraine. The EU rejected the move in principle, but payment deadlines are starting to run out and attention is now turning to other European capitals, especially Berlin, which is heavily dependent on Russian gas.

“With Russia moving closer to weaponizing Europe’s natural gas supply, we’re unlikely to see Brent crude below $100 this week,” said senior market analyst Jeffrey Halley. at Oanda Asia Pacific Pte. Concerns about a slowdown in China due to its virus lockdowns will limit price gains, he added.

German Economy Minister Robert Habeck said on Tuesday the country had already reduced its dependence on Russian oil enough to make a full embargo “manageable”. The country’s crude now accounts for just 12% of imports, down from 35% before the invasion, he said in Warsaw.

Brent remains narrowly behind after approaching a bearish contango structure on Tuesday. The global benchmark’s rapid spread was 42 cents down – a bullish pattern – from $4.64 in early March just after the Russian invasion of Ukraine.

In Asia, positive signs are emerging from virus-hit China. Shanghai hinted at an easing of lockdown measures as infections fell to a three-week low, while the number of cases in Beijing stabilized. President Xi Jinping has also pledged to boost infrastructure construction to support the economy.

Separately, the American Petroleum Institute reported that U.S. crude inventories rose by 4.78 million barrels last week, according to people familiar with the numbers. Official government data is expected later on Wednesday. –Bloomberg


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