Brent crosses $123, hits highest level in 2 months

Oil drilling rigs

Oil started rallied today, May 31, preparing to log the longest streak of monthly gains in more than a decade as European Union (EU) leaders reached an agreement to impose a partial ban on crude imports from Russia.

In addition, China’s easing of COVID-19 lockdown measures also supported the price rise.

Brent crude was trading up 1.51% at $123.51 per barrel, at 8:55 am Makkah time, hitting the highest level in two months.

West Texas Intermediate (WTI) crude rose 3.52% to $119.12 a barrel. No settlement took place yesterday due to US market holiday.

The latest round of EU sanctions would forbid buying oil from Russia delivered by sea but includes a temporary exemption for pipelines, Bloomberg reported, citing European Council President Charles Michel.

"This immediately covers more than 2/3 of oil imports from Russia, cutting a huge source of financing for its war machine," Michel tweeted. "Maximum pressure on Russia to end the war," he added.