Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Oil price rises as EU cuts Russian imports

Oil price rises as EU cuts Russian imports

Oil prices have hit fresh highs after European Union leaders agreed on a plan to block more than two-thirds of Russian oil imports.

Brent crude rose above $123 a barrel on Tuesday, the highest it has been for two months.

Prices for oil and gas have soared in recent months, fuelled by the lifting of lockdowns and the Ukraine war.

Rising energy costs are putting pressure on consumers, making it more expensive to heat homes and drive.

Petrol hit a new record of 173.02p a litre on Monday, according to the AA.

At the same time, the average price of diesel in the UK rose to 182.58p a litre, it said.

Filling a typical 55-litre tank of a diesel now costs more than £100.

The war in Ukraine has pushed countries in the West to shun Russian energy supplies.

Russia currently supplies 27% of the EU's imported oil and 40% of its gas. The EU pays Russia around €400bn (£341bn) a year in return.

The ban agreed by EU leaders will see an immediate ban on Russian oil being transported into the bloc by sea. Two-thirds of Russian oil arrives by sea.

However, the deal, which followed weeks of wrangling, includes a temporary exemption for pipeline oil following opposition from Hungary.

Pledges by Poland and Germany to stop importing pipeline oil by the end of this year will raise coverage of the ban to 90% of Russian imports.


Tough times


Brent crude, the global benchmark for oil prices, has risen more than 70% over the past year.

Oil prices climbed again on news of the EU embargo, with Brent crude reaching its highest level since March.

Russ Mould, investment director at AJ Bell, said confirmation that the EU will cut its purchases of Russian oil by the end of 2022 is pushing up prices because European countries now need to find alternative sources of supply.

"It is not feasible to replace that amount of energy with other fuel sources, such as wind, solar, biomass or nuclear, in such a short space of time, so the EU needs to find oil and gas from somewhere," Mr Mould said.

"This will not be easy because existing global output may well be on contract already, so competition for what is not on contract will now be hotter."

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said the upwards trajectory of oil prices may continue until Western countries outline clearly how supply is going to be sourced.

"It's possible this could get tougher before it gets better," she said.

"We know that rising energy costs are a particular challenge for households which already have severe pressure on their incomes, but smaller businesses shouldn't be left out of the equation either - this is a tough time to be heating offices, and at a time when it's meant to be about rebuilding resilience after the pandemic."

European Commission President Ursula von der Leyen described the compromise as a "big step forward"


European Council chief Charles Michel said the deal cut off "a huge source of financing" for the Russian war machine.

It is part of a sixth package of sanctions approved at a summit in Brussels, which all 27 member states have had to agree on.

So far, no sanctions on Russian gas exports to the EU have been put in place, although plans to open a new gas pipeline from Russia to Germany have been frozen.

EU members spent hours struggling to resolve their differences over the ban on Russian oil imports.

Hungary, which imports 65% of its oil from Russia through pipelines, resisted the new round of sanctions.

The cost of living crisis being felt across Europe has not helped either. Sky-rocketing energy prices - among other things - have curtailed some EU countries' appetite for sanctions which could also hurt their own economies.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
×