Oil prices jump 3% after EU embargo on Russian crude

Oil prices recorded a 3% increase with the price to exceed 88 dollars a barrel, as the European Union embargo on Russian oil, which was agreed last June, comes into force today, Monday.

At the same time, the EU reached an agreement to cap Russian crude at $60 a barrel, a measure that also comes into effect today. The G7 group of major economies imposed a cap on the price of Russian oil to “prevent Russia from profiting from its war of aggression against Ukraine,” it said.

However, Russia – which is the world’s second largest crude oil producer – has said it will not accept the price cap and has threatened to halt oil exports to countries that adopt the measures.

Jorge Leon, senior vice president of Norwegian energy consultancy Rystad Energy, told the BBC’s Today program that oil prices could rise again after the embargo.

“Russia has been very clear that it will not sell crude [πετρέλαιο] to anyone who signs up to the price cap,” he said.

“So what’s probably going to happen is we’re going to see some disruption over the next few months and therefore probably oil prices will start to rise again in the coming weeks.”

Meanwhile, on Sunday the group of top oil producers known as OPEC+ said it would stick to its policy of cutting production to support global prices.

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