Oil choppy following new Russian sanctions proposal
U.S. crude inventories increased 1.2 million barrels last week
Democrats blame oil companies for high gas prices
House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-N.Y., said they want legislation to address price gouging and market manipulation. Fox News’ Chad Pergram with more.
Oil prices were choppy Thursday morning after a European Union proposal for new sanctions against Russia included an embargo on crude in six months.
U.S. West Texas Intermediate crude futures traded around $107 a barrel.
Brent futures traded near $110 a barrel.
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Both benchmarks gained more than $5 a barrel on Wednesday.
Oil wells at sunrise (istock)
The sanctions proposal, which European Commission President Ursula von der Leyen announced on Wednesday, calls for phasing out supplies of Russian crude in six months and refined products by the end of 2022.
The proposal needs unanimous backing from the 27 EU countries to take effect.
On Thursday, OPEC+ is expected to agree to raise production targets by 432,000 barrels per day in June, four OPEC+ delegates told Reuters.
OPEC+ would then stick to plans for a gradual ramp-up of monthly production.
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U.S. crude inventories increased 1.3 million barrels last week after more oil was released from strategic reserves, according to the Energy Information Administration.
OPEC President UAE Energy Minister Suhail al-Mazrouei (C) speaks as he sits with Minister of Energy of Russia Alexander Novak (left) and OPEC Secretary General Mohammed Sanusi Barkindo (r) of Nigeria during a meeting at the headquarters of the Organi (Photo by JOE KLAMAR / AFP / Getty Images)
Reuters contributed to this report.