WASHINGTON (dpa-AFX) - Oil prices extended gains Tuesday to reach fresh two-month highs after the European Union agreed to ban most Russian oil imports by the end of the year as part of new measures designed to punish Russia over its invasion of Ukraine.
Improved PMI data from China and signs of fewer Covid-19 infections in Beijing over the weekend also raised hopes that oil demand will pick up again in China.
Brent crude futures for August delivery jumped 1.8 percent to $119.75 in European trade, while WTI futures for July settlement were up 1.7 percent at $119.10.
The EU ban on Russian oil imports agreed in principle late Monday is expected to tighten an already strained crude market.
It is expected that the ban will effectively cut around 90 percent of oil imports from Russia to the EU by the end of 2022.
Meanwhile, the latest PMI figures from China showed another month of contraction in services and manufacturing activity, though at a reduced pace of decline amid easing COVID-19 curbs and signs of support from authorities.
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