Feeling hopeful31 May 2022 18:17
Oil prices climbed again on news of the EU embargo, with Brent crude reaching its highest level since March.
Russ Mould, investment director at AJ Bell, said confirmation that the EU will cut its purchases of Russian oil by the end of 2022 is pushing up prices because European countries now need to find alternative sources of supply.
"It is not feasible to replace that amount of energy with other fuel sources, such as wind, solar, biomass or nuclear, in such a short space of time, so the EU needs to find oil and gas from somewhere," Mr Mould said.
"This will not be easy because existing global output may well be on contract already, so competition for what is not on contract will now be hotter."
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said the upwards trajectory of oil prices may continue until Western countries outline clearly how supply is going to be sourced.
