Oil edges up 0.3% on EU’s sanctions on Russia, proposed crude ban

(Reuters) -Oil prices edged higher on Thursday, extending gains from the previous session, as a European Union proposal for new sanctions against Russia, including an embargo on crude in six months, offset concerns over Chinese demand.

Brent crude futures had climbed 35 cents, or 0.3%, to $110.49 a barrel by 0209 GMT, while U.S. West Texas Intermediate crude futures rose 25 cents, or 0.2%, to $108.06 a barrel.

Both benchmarks jumped more than $1 a barrel earlier in the volatile session after gaining more than $5 a barrel on Wednesday.

The sanctions proposal, which was announced by European Commission President Ursula von der Leyen and needs unanimous backing by the 27 EU countries to take effect, includes phasing out supplies of Russian crude in six months and refined products by the end of 2022.