# Oil jumps 4% as EU proposes ban on Russian oil Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-04 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: EU plans to phase out Russian oil imports, oil prices surge Meta Description: Oil prices rise following EU's announcement of phasing out Russian oil imports, despite demand concerns in China. Stay updated with latest developments. URL: https://financedigest.com/oil-jumps-4-as-eu-proposes-ban-on-russian-oilhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-04t055102z2lynxnpei43006rtroptp4global-economy-oil-1736815786190-compressed.jpg) By Ahmad Ghaddar LONDON (Reuters) -Oil prices jumped on Wednesday as the European Union, the world’s largest trading bloc, spelled out plans to phase out imports of Russian oil, offsetting demand worries in top importer China. Brent crude futures rose $3.76, or 3.6%, to $108.73 a barrel by 1353 GMT. West Texas Intermediate crude futures rose $3.93, or 3.8%, to $106.34 a barrel. [European Commission President Ursula von der Leyen on Wednesday proposed a phased oil](https://www.financedigest.com/explainer-why-malaysia-is-considering-a-ban-on-palm-oil-exports-to-the-european-union.html "Explainer-Why Malaysia is considering a ban on palm oil exports to the European Union") embargo on Russia over its war in Ukraine, as well as sanctioning Russia’s top bank, in a bid to deepen Moscow’s isolation. The Commission’s measures include phasing out supplies of [Russian crude within six months](https://www.financedigest.com/russian-services-activity-shrinks-for-third-month-running-in-dec-pmi.html "Russian services activity shrinks for third month running in Dec -PMI") and refined products by end-2022, von der Leyen said. She also pledged to minimise the [impact on European economies](https://www.financedigest.com/hurricane-matthew-causes-up-to-15bn-impact-to-us-and-caribbean-economies-in-october-according-to-aon-catastrophe-report.html "Hurricane Matthew causes up to bn impact to US and Caribbean economies in October, according to Aon catastrophe report"). Hungary and Slovakia, however, will be able to continue buying Russian [crude oil](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") until the end of 2023 under existing contracts, an EU source told Reuters on Wednesday. [“Russian oil](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") is now ‘bad oil’,” SEB chief commodities analyst Bjarne Schieldrop said. This [energy war of ‘good oil’](https://www.financedigest.com/exclusive-repsol-agrees-to-sell-alberta-oil-assets-to-cppib-backed-teine-energy-sources.html "Exclusive-Repsol agrees to sell Alberta oil assets to CPPIB backed-Teine Energy -sources") versus ‘bad oil’ has just started,” he added. [Investors are also waiting for an announcement](https://www.financedigest.com/camradata-announces-top-asset-class-searches-for-investors-in-march-2018.html "CAMRADATA announces top asset class searches for investors in March 2018") from the U.S. Federal Reserve on Wednesday. It is expected to intensify efforts to bring down high [inflation by raising interest rates](https://www.financedigest.com/german-inflation-rate-to-ease-over-course-of-2023-econ-minister.html "German inflation rate to ease over course of 2023 – econ minister") and reducing its balance sheet. In the United States, crude and fuel stocks fell last week, according to [market sources](https://www.financedigest.com/renault-considers-making-mass-market-evs-in-india-sources.html "Renault considers making mass-market EVs in India -sources") citing American Petroleum Institute figures. Crude stocks fell by 3.5 million barrels for the [week ended](https://www.financedigest.com/european-shares-end-five-day-losing-streak-still-down-for-the-week.html "European shares end five-day losing streak, still down for the week") April 29, they said. This was more than an expected 800,000-barrel drop estimated in a [Reuters poll](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll"). \[API/S\] U.S. government [data on stocks](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") is due on Wednesday. \[EIA/S\] [Oil prices fell more than 2% on Tuesday on demand](https://www.financedigest.com/oil-rises-on-demand-hopes-as-banking-crisis-fears-subside.html "Oil rises on demand hopes as banking crisis fears subside") worries stemming from China’s prolonged COVID-19 lockdowns that have curtailed travel plans during the Labour Day holiday season. The [global manufacturing purchasing managers index](https://www.financedigest.com/2017-global-payroll-complexity-index-reveals.html "2017 Global Payroll Complexity Index Reveals ") contracted in April for the first time since June 2020, with China’s lockdowns a key contributor, Caroline Bain, chief commodities economist at Capital Economics said in a note. The Organization of the Petroleum Exporting Countries and their allies on Thursday are [expected to stick to their policy for another monthly production](https://www.financedigest.com/oil-rises-on-saudi-oil-production-expectations.html "Oil rises on Saudi oil production expectations") increase. (Reporting by Ahmad Ghaddar; additional reporting by Florence Tan in Singapore; editing by Jason Neely and Elaine Hardcastle) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---