WTI renews two-month high at $117.70 as EU prohibits 90% Russian oil

• The oil bulls are underpinned by the EU after banning the majority of oil imports from Russia.
• Oil prices are set to kiss annual highs at $126.51.
• China’s reopening and summer season in the US and Europe will drive the oil demand.

West Texas Intermediate (WTI), futures on NYMEX, is marching higher on renewed supply worries. The black gold has refreshed its two-month high at $117.66 and is expected to print more gains further as the European Union (EU) has decided to embargo 90% of oil imports from Russia by the end of the Calendar year (CY) 2022. The EU has resolved the opposition of Hungary against a quick ban on oil from Moscow.

It looks like the EU route to punish the Kremlin for its inhuman activities in Ukraine has infused fresh blood into the oil bulls. An embargo on Russian oil by the EU in an already tight oil market has triggered the recession fears in Europe and oil shortening fears in the entire world. No one could deny the fact that the oil prices are exposed to hitting March high at $126.51.

On the demand front, the catalysts of China's re-opening and the summer season in the US are going to keep the demand for fossil fuels at elevated levels. The Chinese administration has announced that the lockdown measures in Shanghai have been withdrawn and materials, machines, and of course men could move now. Going forward, the administration will focus on restoring the extent of pre-lockdown economic activities, which will drive the oil prices.

Apart from that, oil prices will find more momentum as addressing the elevated demand for oil due to the arrival of summer in Europe and North America will drive the black gold higher.