Oil prices rose sharply on Tuesday on escalating investor jitters over supply shortages due to an attack on Saudi oil facilities, coupled with EU plans to impose an embargo on Russian oil exports.
International benchmark Brent crude was trading at $118.56 per barrel at 0633 GMT for a 2.54% gain after closing the previous session at $115.62 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $112.55 per barrel at the same time for a 2.34% increase after the previous session closed at $109.97 a barrel.
Early Sunday, the Saudi-led coalition said air defenses had intercepted a ballistic missile and nine drones fired by Houthi rebels towards Saudi Arabia.
A coalition statement said the rebel drones targeted a water desalination plant in Al-Shaqeeq, a facility run by Aramco in Jazan, a power station in the southern Dhahran al Janub city, a gas station in Khamis Mushait, and an Aramco plant in Yanbu.
Saudi Arabia said it would not take any responsibility for global oil supply shortages in light of the attacks on its oil facilities from Iranian-backed Houthis in Yemen.
-EU may face serious repercussions if Russian oil is banned: Kremlin
AS EU countries weigh the possible impact of a ban on Russia’s oil exports, Kremlin officials also warned of serious repercussions if an embargo is imposed on its oil exports.
Russian Deputy Prime Minister Alexander Novak warned that oil prices could rise to $300 per barrel or even $500 per barrel if EU countries choose to ban Russian oil exports.
Kremlin spokesman Dmitry Peskov also said energy access for EU countries and global markets would be “seriously” hit if Russia is banned from exporting oil to EU countries.
However, not all EU countries support this move, as Germany and the Netherlands said on Monday that the EU is dependent on Russian oil and gas and cannot wean itself off oil from Russia at this time.
Russia is the third-largest oil producer, which is dependent on fossil fuel exports for 40% of its federal budget and supplies approximately 8% of global demand.
Europe relies on Russia for a quarter of its crude oil, which in 2021 reached almost €5.8 billion, according to a new tracking tool by Europe Beyond Coal and the Centre for Research on Energy and Clean Air.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr