Oil Declines As Investors Watch EU Voting on Ban on Russian Oil

Oil prices declined in early Asian trade on Monday as investors awaited European Union discussions on a Russian oil embargo, which are anticipated to reduce world supplies.

Brent crude fell 67 cents, or 0.6 percent, to $111.72 a barrel at 0002 GMT, while U.S. West Texas Intermediate crude fell 75 cents, or 0.7 percent, to $109.02 per barrel.

Last week, both contracts increased for the second consecutive week due to supply concerns after the European Commission suggested a phased embargo on Russian oil as part of its toughest-to-date package of measures regarding the conflict in Ukraine. The plan calls for unanimity among EU members.

Bulgaria would veto EU oil sanctions on Russia if it does not receive an exemption from the proposed embargo, according to the country's Deputy Prime Minister.

EU sources said that the European Commission proposed adjustments to its planned embargo on Russian oil on Friday to give Hungary, Slovakia, and the Czech Republic additional time to switch their energy supplies.

"The negotiations will continue on Monday and Tuesday, and a summit of the leaders may be required to finalize them. Our perspective is unambiguous. If there is a derogation for some countries, we wish to receive one as well, "Vassilev stated on BNT national television.

The global financial markets are also pushed down by worries about interest rate hikes, a probable recession, and the impact of China's COVID-19 lockdowns on the second largest economy in the world.

Meanwhile, Saudi Arabia, the world's top oil exporter, reduced crude prices for Asia and Europe for June on Sunday.