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Oil was down on Monday morning in Asia, giving up its earlier gains as investors took profits after the previous session’s surge. However, the European Union (EU)’s impending ban on Russian crude imports is driving global supply fears.
“Oil markets are expected to gain this week as a pending ban by the European Union on Russian oil will further tighten global supplies of crude and fuels,” Fuji Tomi Securities Co Ltd. chief analyst Kazuhiko Saito told Reuters.
“Oil prices remained bullish, especially WTI’s near-term contract, as U.S. gasoline prices continued to rise amid weaker imports of petroleum products from Europe,” said Fuji Tomi Securities’ Saito.
On the supply side, U.S. energy firms in the week to May 13 added oil and natural gas rigs for an eighth consecutive week as high prices and prompting by the federal government saw drillers return to the well-paid.
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