EU leaders agreed to cut 90% of oil imports from Russia by the end of 2022.
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The global oil price rose above $120 a barrel after European Union leaders agreed to a partial ban on Russian oil imports, lifting oil-producer stocks.
West Texas Intermediate crude, the U.S. benchmark, climbed 3.1% to $118.62 a barrel. Brent crude, the international benchmark, rose 3.7% to $123.83 a barrel, the highest level since March.
The jump bolstered companies that sell crude on global markets. Exxon Mobil (ticker: XOM) shares climbed 1.1% in premarket trading. Fellow supermajor Chevron rose 1%. Occidental Petroleum , the exploration-focused firm favored by Warren Buffett, climbed 2.6% on Tuesday.
Soaring energy prices this year are stoking the fastest inflation in decades, undermining consumer spending and economic growth while also prompting central banks to tighten policy. The European Central Bank gives its next interest-rate decision next week.
EU leaders agreed on Monday to cut most oil imports from Russia by the end of 2022 as part of new sanctions on Moscow in the wake of its invasion of Ukraine. The ban will cover Russian oil brought by sea, allowing a temporary exemption for oil delivered from Russia by pipeline.
EU Council President Charles Michel said on Twitter on Monday that the agreement covers more than two-thirds of oil imports from Russia, “cutting a huge source of financing for its war machine.”
Ursula Von der Leyen, commission president, said in a tweet that the embargo will “effectively cut around 90% of oil imports from Russia to the EU by the end of the year.”
Separately, demand from China is expected to pick up after Shanghai announced the easing of Covid-19 restrictions, reopening the country’s largest city after a two-month lockdown.
Write to Lina Saigol at [email protected]
