Oil continues to rise as EU members discuss Russia bans
Oil prices boosted their gains on Tuesday as a possible oil embargo on Russia by some European Union members and attacks on Saudi facilities put pressure on the market.
European Union foreign ministers are split on whether to join the US in imposing sanctions on Russian oil and some countries, including Germany, argue the bloc is too dependent on Russia's fossil fuels.
Front-month West Texas Intermediate (WTI) futures rose $2.20, or 1.96%, to $114.32 on NYMEX, while Brent futures rose $3.18, or 2.75%, to $118.80 a barrel at 0440 GMT on the Intercontinental Exchange.
Both contracts were up more than 7% on Monday in accordance with the increasing potential of more supply congestion on the market.
Risks are rising, which could push crude oil prices higher. Energy traders say prices are rising in response to both geopolitical concerns in Ukraine and the attacks on Saudi Aramco facilities, and they expect more supply shortages.
Analysts say there are additional concerns about OPEC+ production that could raise supply concerns. Saudi Arabia has warned it will not be responsible for disruptions in global supply following attacks on oil facilities by pro-Iranian Houthis.
The gap between OPEC+ production targets and actual output was just over 800,000 barrels per day (bpd) last month and is forecast to reach 1.15 million barrels per day in March.
Meanwhile, U.S. crude inventories were likely unchanged last week, according to a preliminary survey on Monday. Gasoline inventories were forecast to fall by about 2.1 million barrels last week, while distillate stocks, which include diesel and heating fuel, were expected to decrease by 1.6 million barrels, according to analysts.
The reports from the American Petroleum Institute, an industry group, are to be published at 2130 GMT on Tuesday.
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