Both main crude contracts started the week by soaring more than seven percent Monday as EU nations discussed following Washington and putting an embargo on Russian energy imports for its war in Ukraine.
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Some members are pushing to ramp up pressure on Vladimir Putin with more sanctions over his invasion, though others including Germany -- which still relies on Moscow’s fuel -- have been reluctant to target the key sectors.
Adding to upward pressure on oil was a warning from Saudi Arabia that Yemeni rebel attacks on its oil facilities pose a "direct threat" to global supplies, after Red Sea facilities belonging to oil giant Saudi Aramco were targeted.
The surge in oil prices has been a key driver of turmoil on world markets in recent weeks as demand surges owing to economic reopenings just as supplies are strained.
That, along with a spike in the cost of other key commodities such as metals and wheat caused by the war, has sent inflation rocketing and caused a headache for central banks already trying to wind down pandemic-era monetary policy.
"It seems energy traders are growing more confident that supply shortages are just around the corner," warned OANDA’s Edward Moya.
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"China’s decision to avoid broad lockdowns is also helping oil prices as the short-term crude demand hit should be temporary. The oil rollercoaster ride remains a geopolitical trade and right now it seems the risks are growing and that could push crude prices higher."
There is a growing fear that the global economy could endure a period of stagflation in which prices soar by growth stalls.
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