Oil prices rose on Tuesday, extending gains from the previous session, as the European Union firmed up plans to tighten sanctions on Russia this week, with Germany saying it was prepared to back an immediate embargo on Russian oil.
Brent crude futures rose 25 cents, or 0.2%, or $107.83 a barrel at 0234 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 17 cents, or 0.2%, to $105.34 a barrel.
“Crude prices are up after comments from Germany’s economy minister, which noted that the EU plans to ban Russian oil imports either immediately or in a few months,” said Stephen Innes, managing partner at SPI Asset Management.
The European Commission is expected to finalise work on Tuesday on a sixth package of European Union (EU) sanctions against Russia over its actions in Ukraine, which would include a ban on buying Russian oil.
The embargo may spare Hungary and Slovakia, both heavily dependent on Russian crude, two EU officials said on Monday.
Tight fuel product supplies are adding to demand for crude, which helped drive up Brent and WTI by more than 40 cents on Monday after a volatile session.