Oil up more than 5%, as Russia-EU energy quarrel intensifies | Reuters

Oil up more than 5%, as Russia-EU energy quarrel intensifies | Reuters

Oil prices rose more than 5% on Wednesday after flows of Russian gas to Europe fell and Russia sanctioned some European gas companies, adding to uncertainty in world energy markets.

Oil and gas prices have risen since Moscow invaded Ukraine in February and the United States and allies subsequently imposed heavy sanctions on Russia. Crude trade has been curtailed, and Russia has threatened to cut off gas supply to Europe, though it has stopped short of that move.

Russian gas flows to Europe via Ukraine fell by a quarter after Kyiv halted use of a major transit route, blaming interference by occupying Russian forces. It was the first time exports via Ukraine have been disrupted since the invasion. read more

That move raised concerns that similar interruptions could follow even as prices are already soaring. Russia on Wednesday sanctioned 31 companies based in countries that imposed sanctions on Moscow after Russia invaded Ukraine in February. read more

Brent crude settled up $5.05, or 4.9%, to $107.51 a barrel, while U.S. West Texas Intermediate crude climbed $5.95 a barrel to $105.71, a 6% increase.