Oil prices rose to their highest level in two months on Tuesday morning. This has to do with the announced new sanctions by the European Union against Russia: European leaders reached an agreement on Monday on a ban on the import of Russian oil.
On Tuesday morning, the agreement had an immediate effect on oil prices, which rose to their highest level in two months. On Tuesday morning, a barrel (159 litres) of North Sea oil Brent cost $123.32, $1.65 more than Monday. The price of a barrel of oil of the American type WTI rose by $3.47 to $118.54.
It was European Council President Charles Michel who confirmed the agreement shortly before midnight. “A major source of funding for the Russian war machine is being cut off,” he said. Europe is thus “maximizing the pressure on Russia to end the war in Ukraine”, according to Michel.
It had been clear for several days that the EU would be working on two parallel avenues to circumvent the Hungarian veto against an embargo on Russian oil. As soon as possible, all oil that is currently transported by sea will be banned.
In addition, Poland and Germany commit to no longer importing oil through pipelines by the end of the year. In this way, more than 90 percent of current imports would be banned from the European market by the end of 2022.