Crude oil continued to post gains after European Union (EU) leaders agreed to impose restrictions on most oil imports from Russia.
Global benchmark Brent led at $ 122 a barrel in the Asian session, while US WTI strengthened at $ 118 a barrel thus putting both trades touching two-month highs.
The stalemate between the EU and Hungary was finally resolved after leaders agreed to block Russian oil shipped by sea and grant temporary exemptions to shipments via pipelines to Hungary.
This would make around 90% of EU imports from Russia subject to embargoes as Germany and Poland are voluntarily willing to reduce purchases and will stop them by the end of the year.
The move will add to the pressure on the already tight global oil supply amid rising demand.
Oil prices have previously garnered support from the driving season in the United States and China’s plans to loosen Covid-19 restrictions in major cities, particularly Shanghai.
With the prospect of a strong recovery in global demand, the oil market is expected to remain under pressure due to supply shortages.
