Reuters sources on the latest on oil sanctions:

  • EU proposes ban in one month's time of shipping, financing and insurance services for the transport of Russian oil worldwide
  • A ban on Russian oil would be effective in six months, with no gradual phase-out, both for the spot market and existing contracts

Bulgaria will seek an exemption if the EU agrees, according to Deputy PM Vassilev. Bulgaria gets 100% of its oil from Russia.

A separate report citing a source said there was no immediate deal today but EU envoys will meet again on Thursday.

This is more-aggressive than had been assumed, especially after reports yesterday said there was discord. I still wonder if this falls apart due to Hungary or someone else blocking it.

Meanwhile, the API data yesterday showed a mammoth draw in oil + products:

  • Crude -3479k
  • Gasoline -4500K
  • Distillates -4457K

Add in the SPR  drawdown  and it's close to 15 million barrels.

WTI daily