Oil News: Oil drops on uncertainty over EU-imposed Russian energy embargo

May 11: Oil fell slightly in early Asian trading on Wednesday, continuing previous session weakness caused by demand risks from an economic downturn and uncertainty over a European Union embargo on Russian oil .

Brent crude was down 86 cents, or 1.1%, at $101.60 a barrel at 0002 GMT. U.S. West Texas Intermediate crude fell 80 cents, or 0.8%, to $98.96 a barrel.

The European Union Commission has delayed its decision on a proposed embargo on Russian oil. Hungary dug its heels in opposition and other European countries expressed concern that their economies could suffer if Russian oil imports were further reduced.

“The market has become heavily dependent on a total EU ban on Russian oil if crude prices are to move materially higher from levels that existed shortly after the start of the war,” said Jim Ritterbusch, chairman of Ritterbusch and Associates in Galena, Illinois. , in a footnote.

Major Wall Street indices fell in volatile trading on Tuesday on concerns over aggressive monetary policy tightening and slowing economic growth.

The dollar held near a two-decade high on Tuesday ahead of an inflation reading that could hint at the Fed’s policy outlook, making crude more expensive for buyers using other currencies.

Steve R. Hansen