LONDON (Bloomberg) - Oil climbed to a two-month high as China eased anti-virus lockdowns and the EU worked on a plan to ban imports of Russian crude.
Brent crude rose above $120 a barrel, building on last week’s 6% rally, to reach the highest intraday level since late March. China’s key commercial hub of Shanghai allowed all manufacturers to resume operations from June, while officials said Beijing’s coronavirus outbreak is under control.
European Union leaders intend to reach a political agreement today on an embargo on Russian oil to punish Moscow, according to an official who spoke on condition of anonymity. The bloc failed on Sunday to agree on a revised sanctions package. Hungary is so far refusing to back a compromise despite proposals aimed at ensuring its oil supplies.
Brent crude is on course for a sixth straight monthly climb that would be the longest such run in more than a decade. The advance has been driven by the fallout from the war in Ukraine, as well as increased demand as more economies return from COVID-related restrictions. In the U.S., the summer driving season kicked off at the weekend with retail gasoline prices at a record.