Crude oil prices fall as EU fights to seal Russia’s import embargo

Oil prices fell in early Asian trade on Tuesday after the European Union’s efforts to impose sanctions on Russia’s oil imports were met with resistance from member countries Hungary, a move that would tighten global supplies.

Brent crude futures fell 35 cents, or 0.3%, to 4 113.89 a barrel at 0004 GMT, while US West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.5%, to 3 113.68 a barrel.

EU foreign ministers have failed in their bid to pressure Budapest to lift its proposed oil embargo on Russia following the country’s invasion of Ukraine on Monday. An embargo would require the approval of all EU countries.

In terms of demand, China’s data showed that the world’s second-largest economy processed 11% less crude oil in April than in the previous year amid a severe COVID-19 lockdown, with daily throughput falling to its lowest level since March 2020 due to reduced refineries. On weak costs.

As China’s demand declines, producers in the United States are increasingly trying to recover lost inventories in the wake of Russia’s war against Ukraine – which Moscow calls a “special military operation” – and recover from a coronavirus epidemic.

The U.S. Energy Information Administration (EIA) said in its productivity that Permian oil production in Texas and New Mexico would increase to 88,000 barrels (bpd) a record 5.219 million bpd per day in June. Monday report.

Strategic petroleum reserve inventories fell to 538 million barrels, the lowest since 1987, U.S. Department of Energy data showed Monday.