WTI Seeks To Overstep $122.00 As EU Prepare To Cut Russian Gas

American WTI crude futures on NYMEX, has attracted some significant offers near $125.05 after Germany refused to follow the footprints of the US and prohibit imports of Russian oil.

Oil prices need to surpass $122.00 to regain their mojo amid an overall positive undertone in the oil counter on supply bottlenecks.Earlier on Monday, oil prices were in a positive trajectory from the past few trading sessions on escalating geopolitical tensions amid the Russia and Ukraine war.

Oil prices lifted higher after the US Biden’s administration decided to tap the pause button on oil imports by nations from Russia. In addition to that, the US assured an appropriate oil supply post the ban on Russian oil imports.

The headline boiled the oil prices and lifted them higher as a prohibition on the import of oil from Russia could cripple the demand-supply mechanism.

It seems that the European Union is coordinating the decision of the US and is considering a cut Russian gas imports by two-thirds in a year according to the Financial Times.

Europe addresses its 40% of natural gas demand and more than a quarter of the oil import from Russia. A cut by two-thirds in the total gas imports from Moscow would affect their economic activities dramatically and lead to supply chain halts.

On cease of Russian oil imports, Russian Deputy Prime Minister Alexander Novak mentioned some catastrophic effects including “the surge in prices would be unpredictable. It would be $300 per barrel if not more.”

Although the impact of this statement is not yet displayed in the oil counter, a sense of fear has emerged in the minds of the investors. Apart from the Russia-Ukraine news, investors await the data to be released by the American Petroleum Institute’s Weekly Statistical Bulletin on Tuesday.