Oil Price Increased as EU Cuts Russian Imports

Oil prices have reached new highs after European Union leaders agreed to prohibit more than two-thirds of Russian oil imports. On Tuesday, Brent crude surpassed $123 a barrel for the first time in two months. Oil and gas prices have skyrocketed in recent months, fueled by the easing of blockades and the Ukraine conflict. Rising energy costs impose a strain on consumers, making it more expensive to heat homes and drive.

According to the AA, petrol reached a fresh high of 173.02p per liter on Monday. At the same time, the average price of diesel in the UK increased to 182.58p a litre, according to the report. A average 55-litre diesel tank now costs more than £100.

The Ukraine conflict has caused Western countries to avoid Russian energy supply. Russia presently supplies the EU with 27% of its imported oil and 40% of its gas. In exchange, the EU pays Russia approximately €400 billion (£341 billion) per year.

The EU leaders' agreement will result in an immediate embargo on Russian oil being delivered into the bloc by sea. Two-thirds of Russian oil is transported by water. However, the agreement, which came after weeks of fighting, contains a temporary exemption for pipeline oil in response to Hungary's opposition.