Crude oil prices rose on Tuesday extending gains from the previous session as the European Union stepped up with plans to tightening sanctions this week with Germany saying it was prepared to back an immediate embargo on Russian oil.
Brent crude oil trading around $107 a barrel while WTI is trading around $104 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 as reported by Reuters.
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.
Traders will be closely watching U.S. inventory data, with the American Petroleum Institute industry group reporting stockpiles for the week ended April 29 on Tuesday followed by government data from the Energy Information Administration on Wednesday.
They also forecast distillate inventories, which include diesel and heating oil, declined by 1.2 million barrels, while gasoline stockpiles fell by 300,000 barrels.