Oil prices rose about 3% to a two-month high today on signs of tight supply ahead of US summer driving season, as the European Union wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine.
Brent futures for July delivery rose $3.21, or 2.8%, to $117.24 a barrel by 1515 GMT.
US West Texas Intermediate crude rose $3.98, or 3.6%, to $114.31.
Brent was up for the sixth straight day in a row and on track for its highest close since March 25. WTI was headed for its highest close since March 23.
"The fundamental backdrop ... is getting price supportive as the driving season is approaching and will turn even more bullish once the EU sanctions on Russian oil sales are endorsed by all parties involved," PVM Oil's Tamas Varga said.
European Council President Charles Michel said he was confident an agreement can be reached before the council's next meeting on May 30.
Germany's economy minister Robert Habeck said the EU can strike a deal on an oil embargo within days or look to "other instruments."
Hungary remains a stumbling block, as EU sanctions require unanimous support.
Hungary is pressing for about 750 million euros to upgrade its refineries and expand a pipeline from Croatia.
Even without a formal ban, much less Russian oil is available as buyers and trading houses have avoided suppliers from the country.
Russia's oil production should decline to 480-500 million tonnes this year from 524 million tonnes in 2021, state-run news agency RIA reported, citing Deputy Prime Minister Alexander Novak.
OPEC+ meets on June 2 and is expected to stick to an oil production deal agreed last year and raise July output targets by 432,000 barrels per day, six OPEC+ sources told Reuters, rebuffing Western calls for a faster increase to control prices.
