Oil Prices Hit $110 As Europe Prepares To Ban Russian Crude

Oil jumped to $ 110 in mid -Wednesday as a detail about the European Union’s plan to ban Russian oil from being revealed and digested by the market.

Up 4.75% on day 1:53 at night. EST, only under $ 110 per barrel, oil prices respond to additional details about the European Union plan to generate Russian oil, including through sanctions against insurance companies.

In one month, the European Commission proposed to prohibit all shipping, broker, insurance and financing servers related to Russian oil imports and transportation, Reuters quoted an unnamed European Union source as on Wednesday.

There is a global element for the proposed prohibition related to Russian oil exports to make it more difficult for Russia to find alternative buyers. However, shipping and financing, in particular, the proposed prohibition will only be applied to European Union companies, Reuters report.

The prohibition aspect proposed is a severe measure, because about 95% of the scope of the responsibility of the world takers through the international P&I club group based in London, according to Bloomberg.

The market seems to consider the European Union movement to be far more serious than previous talks, with Bloomberg also recorded Iran’s precedents, when the US and UE succeeded in blocking Iranian oil exports by targeting insurance.

Oil also responded to the roar of the previous meeting today from OPEC+ and the Joint Technical Committee (JTC), which implies the possibility that there is no further output of oil that increases beyond the BDP 423,000 commitment discussed earlier for June to come.

These problems are now greater than fears of the destruction of demand coming out of China, where Covid’s locking continues, without concrete indications of easing in the near future.