China’s demand drives up prices

With increasing demand from China, oil prices rose at the beginning of the week. Meanwhile, the EU Commission is presenting a compromise proposal for a European oil embargo against Russia.

On Monday morning, a barrel (159 liters) of North Sea Brent cost $119.88. That was 45 cents more than on Friday. The price of a barrel of the US WTI variety rose by 84 cents to $115.90. Both varieties are trading at the level of early March.

Prices were boosted by news from China, among other things, which indicated increasing demand from the second largest economy. In the economic metropolis of Shanghai, for example, all companies were allowed to resume production from June. Officials also said that the outbreak of the corona virus in Beijing was under control.

Compromise proposal for oil embargo

In addition, according to circles, the EU Commission has presented a compromise proposal in the dispute over plans for a European oil embargo against Russia. According to information from the German Press Agency, the draft initially only allows the import of oil transported by ship to be phased out.

Oil transported via the Druzhba pipeline would be exempt until further notice. If the compromise proposal is accepted, the supply of crude oil on the world market should initially become scarce. This prospect also supports the prices.

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