Oil prices settle up on increased chance of EU embargo of Russian oil | Reuters

Oil prices settle up on increased chance of EU embargo of Russian oil | Reuters

Oil settled higher on Thursday on the increased likelihood that Germany will join other European Union member states in an embargo on Russian oil, which could further tighten supplies in the already stressed global crude market.

Traders were reacting to media reports of comments on Tuesday from German Economy Minister Robert Habeck, who said the EU's largest economy could cope with an EU embargo on Russian oil imports and Germany hoped to find ways to replace Russian oil with other supply. read more

"The apparent decision by Germany to remove its opposition to a Russian oil sanction would appear to go a long way in an overall EU ban that would further reduce Russian oil availability in a global market," said Jim Ritterbusch, president of Ritterbusch and Associate in Galena, Illinois.

Brent crude futures rose $2.27 to settle at $107.59 a barrel while U.S. West Texas Intermediate crude rose $3.34, or 3.3% to $105.36.

Germany relies heavily on Russian energy imports and had opposed a full ban.