Oil futures contracts closed lower on Tuesday (10) in yet another session in which the impasse over the potential European Union embargo on Russian oil put pressure on the commodity’s prices.
Hungary remains reticent about the proposal, and leaders such as French President Emmanuel Macron are seeking to convince Hungarian Prime Minister Viktor Orbán to join the import ban, which needs unanimity to pass. In this scenario, the barrel in New York lost the symbolic mark of US$ 100.
On the New York Mercantile Exchange (Nymex), a barrel of WTI oil due for delivery in June fell 3.23% to $99.76 a barrel, while Brent dropped 3.28% to $102.46. , on the Intercontinental Exchange (ICE).
For Commerzbank, the EU’s planned oil embargo against Russia does not yet appear to have been given the green light, as Hungary still threatens to veto it.
The commission’s chairman, Ursula von der Leyen, traveled to Budapest on Monday to try to resolve the issue and, although negotiations have apparently progressed, no progress has been made.
Furthermore, the EU appears to be abandoning its original plan to ban tankers registered in Europe from transporting Russian oil, although insuring such shipments is still prohibited, the German bank recalls.
In the view of TD Securities, it is important to point out that an insurance ban could remain a significant deterrent to Russian oil exports, despite the bloc reportedly overturning the remittance ban. In addition, this also opens the door for additional US sanctions, which could impose restrictions on the same sanctions circumvention pathways, he says.
On Tuesday, Macron visited the Hungarian capital to meet with Orbán. According to news agencies, EU High Representative Josep Borrell said he hoped for an agreement between EU member countries on the embargo soon, but stressed that some “difficulties” remain “pending”.
The diplomat wants the issue resolved by the next meeting of the EU’s Council on Foreign Relations, on the 16th.
Despite the recent drop, an Oanda analyst Edward Moya said energy investors will not forget how tight the oil market is and also how prices will react when the EU succeeds in imposing sanctions.
Source: CNN Brasil
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