Oil rises, supported by EU efforts to ban Russian crude, hopes for demand

Oil prices rose to a seven-week high on Tuesday, buoyed by continued pressure from the European Union to ban Russian crude imports that would reduce supply, and as investors focused on increasing demand after the easing of Chinese coronavirus lockdowns.

On Monday, EU foreign ministers failed in their efforts to pressure Hungary to change its position on the proposal to impose an oil embargo on Russia in the wake of its invasion of Ukraine. Passage of this proposal requires the approval of all EU member states.

But diplomats are now pointing to the May 30-31 summit as when a gradual Russian oil embargo will be agreed.

Brent crude futures rose to 115.50 dollars a barrel, the highest level since March 28, and by 1024 GMT, they rose 1.16 percent, or one percent, to 115.40 dollars a barrel.

US West Texas Intermediate crude futures rose 78 cents, or 0.7 percent, to $114.98 a barrel.

Both benchmarks rose more than 2 percent on Monday, following a 4 percent jump on Friday.

Analysts said that crude was supported by hopes of a recovery in demand in China, which is looking to ease restrictions to combat Covid-19.