Oil prices jump by 3% after EU plans phased ban on Russian imports

Oil prices jump by 3% after EU plans phased ban on Russian imports
Oil prices increased on Wednesday after the EU announced plans to phase out Russian imports following Moscow's invasion of Ukraine.
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Surging oil prices have put even more pressure on communities across the world already suffering from rising inflation [source: Getty]

Oil prices jumped on Wednesday as the European Union, the world's largest trading bloc, set out plans to phase out imports of Russian oil. 

Brent crude futures rose $2.94, or 2.8 percent, to $107.91 a barrel by 0746 GMT amid thin trading volume, with China and Japan closed for holidays. West Texas Intermediate crude futures rose $3.02, or 3 percemt, to $105.43 a barrel.

European Commission President Ursula von der Leyen on Wednesday proposed a phased oil embargo on Russia over its invasion of Ukraine, as well as sanctioning Russia's top bank, in a bid to deepen Moscow's isolation. 

The Commission's measures include phasing out supplies of Russian crude within six months and refined products by the end-2022, von der Leyen said. She also pledged to minimise the impact on European economies.

Investors are also waiting for an announcement from the US Federal Reserve on Wednesday. It is expected to intensify efforts to bring down high inflation by raising interest rates and reducing its balance sheet.

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The Organization of the Petroleum Exporting Countries and their allies on Thursday are expected to stick to their policy for another monthly production increase