The price of a barrel of Brent oil for July delivery collapses by more than 5% at the opening on Wednesday to $116, after nine days of rally that put crude oil above $125.
The European benchmark crude fell 5.53% on the London futures market to $116.05 a barrel. The Wall Street Journal reported today that some OPEC members are considering the idea of suspending Russia’s participation in the oil production deal as Western sanctions and a partial European embargo begin to undermine Moscow’s ability to pump more.
The post explains that exempting Russia from its oil production targets could pave the way for Saudi Arabia, the United Arab Emirates and other producers in the Organization of the Petroleum Exporting Countries (OPEC) to pump significantly more crude, which the United States has done. The United States and European countries pushed them to do so.
Until today, Brent accumulated nine consecutive sessions on the rise, and it had risen from $ 109 a barrel, which it recorded at the close of last May 18, to $ 122.8 yesterday, a session in which it exceeded $125.
Contributing to this rise was the end of the strict blockade that China had kept due to the Corona virus for two months, and the agreement reached in the European Union to stop all imports of Russian crude by ship before the end of the year as a result. Invasion in Ukraine.
In this context, the Russian state-owned Gazprom announced yesterday that it will stop, as of June 1, shipments of this fuel to Shell Energy, for supplies in Germany, and to Ørsted in Denmark, because of its refusal to do so. Making payments in rubles, as required by Moscow, Bloomberg reports.
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