The European Union has finally found a way to agree on a partial ban on oil imports from Russia.
The group has agreed to an immediate ban on imports arriving by sea. That covers about two-thirds of Russian imports. To get Hungary’s vote for the partial ban, the EU agreed to exempt oil transported through the Druzhba pipeline. Hungary is heavily dependent on Russian oil. In fact, it’s oil refineries will have to be retooled so they can run on non-Russian crude.
The goal, according to the European Council president, Charles Michel, is to increase the scope of the ban to 90% of imports from Russia by the end of the year. (The EU currently pays Russia about €1bn ($1.05 billion) a day for oil and gas. That money is an invaluable source of hard currency for Russia’s war in Ukraine.)
As of noon today, May 31, U.S. benchmark West Texas Intermediate was up 2.09% to $117.48 a barrel. International benchmark Brent crude was up 1.40% to $123.33 a barrel.
Shares of ConocoPhillips (COP) were up 1.99%. Pioneer Natural Resources (PXXD) had gained 1.75%. Equinor (EQNR) was ahead 1.47%. The U.S. Oil Fund (USO) was higher by 1.71%.
Natural gas, which was not included in the EU agreement, fell with the U.S. Natural Gas Fund (UNG) down 2.06%. Liquified natural gas exporter Cheniere Energy (LNG) was off 0.54%.
In the afternoon, oil, natural gas, and energy stocks pulled back on speculation that OPEC would announce higher production targets at its meeting this week. West Texas Intermediate finished the day up 0.44% to $115.17 a barrel. Brent ended at $122.84 a barrel, up 0.96%
