Oil prices edged up on Thursday on supply worries after the European Union (EU) laid out plans for new sanctions against Russia including an embargo on crude.
Reuters report that pressure from a stronger dollar and a drop in global stock markets, however, kept oil prices in check.
Brent futures rose 76 cents, or 0.7%, to settle at $110.90 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 45 cents, or 0.4%, to settle at $108.26.
That was the highest close for WTI since March 25 and the highest settle for Brent since April 18.
U.S. gasoline futures, meanwhile, closed at their highest since settling at a record high on March 8.
A strong dollar makes oil more expensive for holders of other currencies.
Wall Street stocks tumbled as investors shed risky investments, worried the Fed might hike rates more this year to tame inflation
The EU sanctions proposal, which needs unanimous backing from the 27 countries in the bloc, includes phasing out imports of Russian refined products by the end of 2022 and a ban on all shipping and insurance services for transporting
“The oil market has not fully priced in the potential of an EU oil embargo, so higher crude prices are to be expected in the summer months if it’s voted into law,” Rystad Energy head of oil markets research Bjornar Tonhaugen said. Reuters
