By Gina Lee
Investing.com – Oil was up on Friday morning in Asia, . Brent is on track for its biggest weekly jump in a month and a half, buoyed by the prospect of the European Union (EU) ban on Russian oil and the upcoming summer driving season in the United States .
were up 0.21% at $114.41 as of 00:55 ET (0455 GMT) after climbing as high as $118.17 earlier in the session and the benchmark was set for a gain of about 4% for the week. edged up 0.09% to $114.19 and was set for a weekly gain of around 0.7%.
“The momentum is squarely bullish, with many factors pointing to a tighter market, especially as the EU is on the brink of a total ban on Russian energy,” SPI managing partner Stephen Innes told Reuters. Asset Management.
“Ahead of the peak of the U.S. driving season, refined products remain in alarming shortage in the West, which should keep oil prices on a high bottom through the summer.”
Brent and WTI crude contracts are set to end the week higher as the European Commission continues to seek the unanimous backing of the bloc’s 27 member states needed to implement its proposed new sanctions against Russia.
Hungary is a Member State which remains a stumbling block to this unanimous support. The country needs three and a half to four years to move away from Russian crude and make huge investments to adjust its economy, according to a senior Hungarian official, adding that Hungary cannot support the oil embargo proposed by the EU until there is an agreement. on all issues.
“The combination of the real loss of supply and the growing refusal to accept supply from Russia will see these commodities, oil and gas, increase dramatically,” the chief economist at Reuters told Reuters. ACY Securities, Clifford Bennett.
The black liquid has gained around 50% since the start of the year.
Meanwhile, the Organization of Petroleum Exporting and Allied Countries (OPEC+) is expected to leave the 2021 oil production deal unchanged at its June 2 meeting. The cartel could raise July production targets by 432,000 barrels per day, fending off Western calls for a faster increase. to reduce the price spike, six OPEC+ sources told Reuters.