Oil pauses pending the next wave of sanctions against Russia

Oil prices ended with a slight decline on Tuesday, picking up their breath after a series of increases as the market expects to learn about the new Western sanctions package against Russia, announced for Thursday.

The North Sea Brent barrel for delivery in May lost 0.12%, ending at $115.48, having gained 18% in the previous three sessions.

In New York, the barrel of West Texas Intermediate (WTI), with deadline for April, on its last trading day, fell 0.32%, to $111.76.

“Operators expect to know what actions will come,” said Edward Moya, an analyst at Oanda, about US President Joe Biden's trip to Europe.

Taking advantage of this trip, Westerners will announce on Thursday “new sanctions against Russia and strengthen” the measures already imposed, US national security adviser Jake Sullivan explained on Tuesday.

In addition, Biden is going to announce “a joint action to strengthen Europe's energy security” and reduce its dependence on Russian gas, Sullivan added, as EU members have been debating a possible embargo on Russian oil for several days.

“I don't think the European Union will reach an agreement to suspend all purchases of Russian oil,” commented Andy Lipow of the Lipow Oil Associates cabinet.

“There are still countries that are very dependent and don't have many alternatives to replace it,” the expert added.

Also on Tuesday, the French group TotalEnergies announced the cessation of purchases of Russian oil or petroleum derivatives “no later than the end of the year”.

On the other hand, “two large economies, China and India, are still buying Russian oil and this should end the recent price spike,” said analyst Edward Moya.

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