Oil extends rally as EU members weigh Russian ban

Oil prices extended gains on Tuesday as some European Union members discussed a potential oil embargo on Russia and attacks on Saudi facilities sent jitters through the market.

Front-month West Texas Intermediate futures were up $2.20, or 1.96 per cent, to $114.32 a barrel on NYMEX and Brent futures were up $3.18, or 2.75 per cent, to $118.80 a barrel on the Intercontinental Exchange at 0440 GMT. Both contracts had settled up more than 7 per cent on Monday as the potential for more supply disruptions weighed on the market.

European Union foreign ministers are split on whether to join the United States in sanctioning Russian oil, with some countries including Germany arguing that the bloc is too dependent on Russia’s fossil fuels.