TOKYO- Oil prices eased on Tuesday as Hungary resisted a European Union push for a ban on Russian oil imports, a move that would tighten global supply, and as investors took profits following a recent rally.
Brent crude futures fell 22 cents, or 0.2 percent, to $114.02 a barrel, while US West Texas Intermediate (WTI) crudefutures slid 35 cents, or 0.3 percent, to $113.85 a barrel. Both benchmarks gained more than 2 percent on Monday, following a 4 percent jump on Friday.
EU foreign ministers failed on Monday in their effort to pressure Budapest to lift its veto of a proposed oil embargo on Russia following the country’s invasion of Ukraine. An embargo would require approval from all EU nations.
Still, overall sentiment on prices remained bullish amid optimism about demand recovery in China as it looks to ease COVID restrictions that have hurt its economy, analysts said.
“Shanghai’s plans to relax the COVID-19 lockdown in stages raised expectations of a demand revival in China,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
“With the US approaching the start of the summer driving season amid tight fuel supply, oil prices are expected to head toward $120 a barrel,” he said.
Shanghai set out plans on Monday for the end of a painful COVID-19 lockdown that has lasted more than six weeks, heavily bruising China’s economy, and for the return of more normal life from June 1.
