On May 30, 2022, European Union leaders reached a landmark agreement to ban 90% of Russian crude oil imports by the end of the year, sending oil prices soaring.
During Asia hours on Tuesday, US crude futures for July surged 3.76% to $119.39, while Brent crude futures rose 1.93% to $124.02. Contracts for August also traded higher, with US crude rising 3.83% to $116.52 and Brent up 2.16% to $120.05 per barrel.
According to Charles Michel, president of the European Council, the move would immediately hit 75% of Russian crude imports.
The embargo is part of the European Union's sixth sanctions package on Russia since it invaded Ukraine, with talks to impose a fuel embargo underway since the start of the month.
European Commission President Ursula von der Leyen explained that the temporary exception for crude oil delivered by pipeline would cover the remaining Russian oil not yet banned.
Charles Michel stated, 'We have agreed that the Council will revert to the topic as soon as possible in one way or the other. So this is a topic where we will come back to and where we will still have to work on, but this is a big step forward, what we did today.'
Roughly 36% of the EU's oil imports come from Russia, a country that plays an outsized role in global crude markets.
The ban is expected to impact fuel prices in Kenya in months to come if oil prices continue to rise.
