Business Maverick: Oil Pares Declines as EU Avoids Sanctions on Russian Crude

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Oil erased early losses after the European Union eschewed sanctions on Russian oil, and investors weighed the outlook for the dollar.

West Texas Intermediate traded near $102 a barrel after slipping as much as 1.6%. While the EU will press on withagainst Moscow for the war in Ukraine, including a ban on coal, crude won’t yet be targeted. European Commission President Ursula von der Leyen said the bloc will still push ahead with a debate among members on tackling Russian oil.

The dollar held gains after jumping on Tuesday as investors digested the prospect of a swift reduction in the Federal Reserve’s debt holdings, part of stepped up monetary tightening to combat soaring inflation. A stronger currency typically makes commodities priced in the currency less attractive. Oil surged by a third in the first quarter as the Russian invasion and backlash from the EU and U.S. roiled markets. While the U.K. and Washington have moved to bar Russian crude, it’s harder for the EU to follow suit given the region’s far higher level of dependence. Washington and allies in the International Energy Agency have also tapped strategic petroleum reserves to try to calm prices.West Texas Intermediate for May delivery eased 0.1% to $101.

 

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