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Market News International oil prices rebound, even if the sanctions agreement against Russia is revised, the EU will inevitably be in trouble

International oil prices rebound, even if the sanctions agreement against Russia is revised, the EU will inevitably be in trouble

On Tuesday (May 10), international oil prices bottomed out and rebounded. Although a stronger dollar and the risk of a global recession have heightened concerns about the outlook for global energy demand, the European Union's oil import embargo on Russia has supported a rebound in oil prices, and investors are worried about some European oil prices. Economies could suffer. Economists say Russia's cessation of natural gas supplies to Germany will trigger a deep recession in Germany and lead to the loss of 500,000 jobs.

2022-05-10
10410
On Tuesday (May 10), international oil prices bottomed out and rebounded. Although a stronger dollar and the risk of a global economic recession have heightened concerns about the outlook for global energy demand, the EU's oil import embargo on Russia has supported a rebound in oil prices, and investors are worried about some European oil prices. Economies may suffer.

At 16:49 GMT+8, NYMEX crude oil futures rose 0.61% to $103.72 a barrel; ICE Brent crude futures rose 0.49% to $106.46 a barrel.


The two markets fell more than 2% at one point, extending the overnight decline of more than 7%. This reflects a trend in global financial markets as investors sell riskier assets over concerns about rising interest rates and their impact on economic growth. The dollar remains near 21-1/2-year highs, making oil more expensive for holders of other currencies.

The European Commission is considering more money to upgrade oil infrastructure in Eastern European landlocked countries to persuade them to agree to an embargo on Russian oil, sources said. The measures are part of a new package of sanctions against Russia's invasion of Ukraine, but passage of the legal text still requires agreement on the size of the investment,

The sources also said a new version, currently being drafted, could lift the ban on EU tankers carrying Russian oil, under pressure from Greece, Cyprus and Malta. Another sticking point is that Cyprus is concerned about a proposed ban on the sale of real estate to Russians.

But EU companies would be barred from providing insurance or other financial services for Russian oil to be transported around the world, the sources added, noting that the original proposal would remain unchanged at this point.

While most EU countries must fully implement an embargo on Russian oil imports by the end of this year, Hungary — the most vocal critic of the new sanctions package — has been exempted and will continue to import Russian oil until the end of 2024. Hungary reiterated its position that it will not accept a new round of EU sanctions on Russia until its concerns are resolved.

Slovak and Czech oil purchases from Russia will also continue until mid-2024. Some European economies could suffer if Russia cuts oil exports further, or if Russia retaliates by cutting off gas supplies.

Reports have suggested that German officials are quietly preparing for a sudden disruption in Russian gas supplies, with contingency plans that could include taking control of key companies. A senior economist said Russia's cessation of gas supplies to Germany would trigger a deep recession in Germany and cost 500,000 jobs.

Last year, Russian gas accounted for 55 percent of Germany's total gas imports. Germany has said it wants to get rid of Russian supplies, but expects to remain largely dependent on Moscow for gas until mid-2024.

Gazprom stopped gas exports to both countries last month after Poland and Bulgaria refused to pay in rubles. The European Commission has accused Moscow of extortion with gas supplies, which the Kremlin denies.
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