Oil rises as Europe’s energy crisis escalates; Brent climbs above $106

Oil drilling rigs

Oil prices rose today, April 27, after Russia cut off natural gas supplies to Poland and Bulgaria, which led to an escalation of the energy crisis in Europe as the war in Ukraine continued.

Brent crude was trading up 1.28% at $106.33 per barrel, at 10:03 am Makkah time. West Texas Intermediate (WTI) crude rose 1.08% to $102.80 a barrel.

“With Russia moving closer to weaponizing natural gas supplies to Europe, we are unlikely to see Brent crude below $100 this week,” Bloomberg reported, citing Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte.

Concerns about a slowdown in China due to its virus lockdowns will limit price gains, he added.

Germany’s Economy Minister Robert Habeck said on April 26 that the nation had already cut its reliance on Russian oil enough to make a full embargo “manageable.”