Oil prices rose in early trading on Monday, although they started the day with a decline, following the decline in stock markets in Asia, caused by fears of a global recession that could reduce demand for fuel, Reuters reported.
At the same time, investors are watching the European Union’s negotiations for an embargo on Russian oil, which could further strain global supplies.
The Brent grade rose 0.23 dollars, or 0.20%, to 112.6 dollars per barrel, while the price of American light crude oil WTI rose by 0.11 dollars, or 0.10 %, to $ 109.9 per barrel.
Global financial markets are under pressure amid fears of rising interest rates from China’s leading central banks and lockdown, which are hurting the world’s second-largest economy.
“China’s current lockdowns may continue to weigh on oil prices in the short term,” said CMC Markets analyst Tina Teng.
The reduction in the price of oil from Saudi Arabia also reflects concerns about global oil demand, she added.
Saudi Arabia, the world’s largest oil exporter, cut crude oil prices for Asia and Europe on Sunday.
Brent and WTI rose for the second week in a row last week amid supply concerns after the European Commission proposed a phased embargo on Russian oil as part of a new package of sanctions over Ukraine’s conflict. The proposal requires unanimous support from EU member states.
On Sunday, the Group of Seven (G-7) pledged to ban or phase out Russian oil imports.
“We are committed to phasing out our dependence on Russian energy, including by phasing out or banning Russian oil imports. We will ensure that we do this in a timely and organized manner, “the G7 leaders said in a joint statement. However, the countries did not provide specific timeframes for stopping imports from Russia.
The United States has also announced new sanctions against Russia over its invasion of Ukraine. The measures include removing Western commercials from Russia’s three largest television stations, as well as sanctions against Gazprombank executives.
Hundreds of trucks blocked the border between Estonia and the Russian Federation
Long queues of trucks waiting to enter the Russian Federation have piled up on Estonia’s eastern border, with some drivers complaining to an ETV reporter that they have been waiting for a week.
Data from the GoSwift online transport management system show that more than 250 heavy goods vehicles are blocked at the Narva border crossing.
Employees of the Narva-1 border checkpoint admit that there is a problem due to the war in Ukraine and the closure of borders and airspace over the Russian Federation. Border authorities report a drastic increase in the number of trucks. According to them, the problem affects those carriers who arrive by accident and have not booked in advance a day and time to cross the border.
“Logistics companies must decide when they will cross the border and pre-register. “Before the war in Ukraine, unregistered vehicles waited at most an hour to cross the border,” said Tinis Seesmaa, a board member of AS Silport Kinnisvara, a company that operates the nearby port of Silamäe.
Border authorities assume that the problem will deepen during the upcoming May holidays in the Russian Federation around May 9.
