Oil jumps 3% as the European Union announces plans to ban Russian crude

Oil prices jumped on Wednesday as the European Union, the world’s largest trading bloc, announced plans to phase out Russian oil imports, offsetting fears of declining demand from China, the world’s largest oil importer.

By 0746 GMT, Brent crude futures rose $2.94 a barrel, or 2.8 percent, to $107.91 a barrel, amid trading in small quantities due to a holiday in China and Japan. US West Texas Intermediate crude futures rose $3.02, or 3 percent, to $105.43 a barrel.

European Commission President Ursula von der Leyen on Wednesday proposed a phased embargo on Russian oil due to the war in Ukraine, as well as sanctions against Russia’s largest bank, aimed at further isolating Moscow.

The measures proposed by the President of the European Commission included the elimination within six months of Russian crude and refined products by the end of 2022. Von der Leyen pledged to reduce the impact on European economies.

According to market sources, citing data from the American Petroleum Institute, US crude and fuel stocks fell last week. Crude stocks fell by 3.5 million barrels in the week to April 29, the sources said.