Title: Oil prices nudge higher on EU's Russian oil ban, end of Shanghai lockdown

Jun 01, 2022 02:16AM ET

By: AnalysisWatch

Oil prices rose slightly Wednesday after European Union leaders agreed on a partial and gradual ban on Russian oil and China ended its COVID-19 shutdown in Shanghai.

Brent crude for August delivery was up 35 cents, or 0.3%, at $115.95 a barrel at 02:05 AM ET. The contract was down 1.7% on Tuesday.

The Brent contract for July delivery closed up 1% at $122.84 a barrel on Tuesday.

U.S. West Texas Intermediate (WTI) crude oil rose 37 cents, or 0.3%, to $115.04 a barrel.

Both benchmarks ended May higher, marking the sixth consecutive month of rising prices.

EU leaders agreed in principle Monday to cut 90% of oil imports from Russia by the end of this year.

These are the EU's toughest sanctions yet against Moscow since its invasion of Ukraine three months ago, which Moscow calls a "special military operation."

The gains have been held back by reports that some producers are considering the idea of suspending Russia's participation in a production deal with OPEC+, a grouping of members of the Organization of the Petroleum Exporting Countries and its allies, believing such a move would increase supply.

Although there was no formal pressure on OPEC countries to pump more oil to make up for a possible Russian shortfall, some Gulf countries had begun planning to increase production in the coming months, the Wall Street Journal reported, citing OPEC delegates.

U.S. crude oil production rose more than 3% in March, reaching its highest level since November,

according to a monthly report released Tuesday by the U.S. Energy Information Administration.

U.S. government data on inventories was expected Thursday. In a Reuters poll, analysts expected U.S. crude inventories to fall last week while gasoline and distillate stocks rose.