Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months as traders priced in expectations that the European Union would eventually reach an agreement to ban Russian oil imports.
Brent crude futures contract for July, which would expire Tuesday, was up $1.35, or 1.1 per cent, at $120.78 a barrel. The August Brent contract , which was more active, rose $1.27 or 1.1 per cent to $116.81 a barrel.
Also, United States West Texas Intermediate (WTI) crude futures jumped $1.11 or one per cent to $116.18 a barrel, extending solid gains made last week.
The EU is meeting to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a “special military operation”.
“Europe has been haggling about this for the better part of a month, but increasingly the market is pricing (additional sanctions) in as a risk,” said Daniel Ghali, senior commodity strategist at TD Securities in Toronto.
Follow us on:
