Oil trades at $109 per barrel, as EU decides on ban of Russian oil

The oil market was up on Wednesday, with Brent crude selling at $109.06 per barrel, a rate last seen a day before April ended, as the European Union President, Ursula von der Leyen, proposes a total ban on Russian oil.

Ripples Nigeria previously reported that the European continent is heavily dependent on Russian oil, which accounts for 25% of the commodity imported by countries in the region.

And following the invasion of Ukraine by Vladimir Putin, the President of Russia, EU has been cautious regarding the sanctions implemented against Kremlin, to avoid collision on oil deals.

However, after Russia demanded its trade partners purchase its oil in the country’s currency, Ruble, or get disconnected from their oil pipeline, the EU President has responded by offering to pull Russia’s oil plug from the continent.

Following the announcement on Wednesday during a speech to the EU parliament, the price of crude oil rose to $109.06 per barrel during the day, appreciating by 2.82% from Tuesday’s $106.06.

Read also: Senate identifies crude oil theft as major cause of Nigeria’s economic downturn

Although the ban hasn’t taken effect, with 27 members of EU meant to voted unanimously for the proposal to become law. However, two countries, Hungary and Slovakia, are expected to except themselves from the restriction, as their reliance on Russian oil is more significant compared to fellow nations.

von der Leyen is proposing the deal take effect in six months time, but countries like Hungary and Slovakia are projected to stay connected to Kremlin’s pipelines until end of 2023.

Despite acknowledging the difficulties in achieving the restriction, she proposed a complete import ban on all Russian oil, seaborne and pipeline, crude and refined.

“Some member states are strongly dependent on Russian oil. But we simply have to work on it.” Von der Leyen said, adding that, “We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimises the impact on global markets.”

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