London, (Business News Report)|| Oil prices fell on Tuesday morning, with investors taking profits after the noticeable rise in the last period.
The decline in oil prices came in light of Hungary’s resistance to the goal of the European trend aimed at banning Russian oil imports, in a move that could lead to a decline in global supplies, as well as investors’ desire to take profits after a recent rally.
Brent crude futures were down 22 cents, or 0.2%, at $114.02 a barrel by 0327 GMT.
West Texas Intermediate crude futures fell 35 cents, or 0.3%, to $113.85 a barrel.
Both rose more than two percent on Monday, following a jump of four percent on Friday.
On Monday, European Union foreign ministers failed in their efforts to pressure Budapest to change its position on the proposal to impose an oil embargo on Russia. Passing this proposal requires the approval of all EU member states, according to Reuters.
But analysts said sentiment about prices remained generally high amid optimism about a recovery in demand in China, which is looking to ease restrictions to combat COVID-19.
Data from the US Department of Energy revealed on Monday that stocks in the strategic oil reserve fell by 538 million barrels, the lowest level since 1987.
Separately, gas prices fell in Europe, supported by a plan being drafted by the European Union to provide a way for energy companies to pay for Russian natural gas, without falling into breach of sanctions, as bill payment deadlines approached.
According to data from the Bloomberg news agency, the benchmark gas futures contract in the Netherlands fell 3 percent yesterday, after a 9.2 percent decline Friday.
It is expected that the European Commission will provide buyers with new guidance on how to pay for gas, in order to meet the demands of President Vladimir Putin, and at the same time without any possible breach of the sanctions imposed against the backdrop of Russian interference in Ukraine.
Traders are eagerly awaiting an update to the European guidance, especially as most payment deadlines expire at the end of the month.
Russia had asked companies to accept a new method of business transactions that included opening two accounts with Gazprombank, one in euros or dollars and the other in rubles.