RIYADH: Oil futures extended gains Tuesday morning after some members of the European Union considered imposing sanctions on Russian oil and attacks on Saudi oil facilities sparked jitters in the market.
First-month West Texas Intermediate futures rose $2.20, or 1.96%, to $114.32 a barrel.
Brent crude oil futures were up $3.18, or 2.75%, at $118.80 a barrel on the Intercontinental Exchange at 0440 GMT.
Both contracts had settled over 7% on Monday, with the potential for further supply disruptions weighing on the market.
EU members divided over Russian energy ban
Meanwhile, EU member countries are divided on banning Russian energy as their reliance on energy imports from Russia varies.
As EU foreign ministers met at the bloc’s Brussels headquarters on Monday, member states failed to reach consensus on sanctions against energy imports from Russia.
Foreign ministers from countries like Lithuania and Ireland have called for intensified sanctions against Russia’s energy sector and for the Russian oil embargo to be included in the bloc’s fifth sanctions package.
Yet the proposal was rejected by Germany and the Netherlands, which are heavily dependent on energy imports from Russia.
Overall, the EU is heavily dependent on Russian energy, which accounts for a significant share of the EU’s annual imports.
Indian stocks fall
Indian stocks fell on Tuesday, led by heavyweights banking and consumer goods, with a continued rise in crude oil futures further denting sentiment.
As of 0410 GMT, the blue-chip NSE Nifty 50 was down 0.34% at 17,061.15, while the benchmark S&P BSE Sensex slipped 0.38% to 57,076.89.
Indices gained around 4% last week, helped by falling oil prices, signs of progress in peace talks between Russia and Ukraine and further easing of local COVID-19 restrictions in the part of an expanded vaccination campaign.
However, the lack of material progress in the peace talks amid ongoing fighting and a possible energy embargo against Russia by the European Union have once again pushed up oil prices.
(With contributions from Reuters)