Oil Extends Gains as Investors Weigh Russian Ban, China Outlook

Oil rose for a fourth session as traders weighed Germany's pledge to ban Russian imports and the outlook for China.

West Texas Intermediate futures climbed above $111 a barrel in early Asian trading after a third weekly gain. If the European Union fails to agree on co-ordinated action, Germany will stop Russian oil imports by the end of the year. The shops are going to reopen after weeks of strict Covid-19 restrictions.

The oil market has been in turmoil since the beginning of February, following Russia's invasion of Ukraine. The cost of everything from food to fuels has gone up because of the war. US gasoline futures rose to a record above $4 a gallon.

EU foreign ministers meet in Brussels on Monday to discuss the next round of Russian sanctions and diplomats have floated the idea of delaying a proposed ban on its oil imports following objections from Hungary. The officials who spoke on condition of anonymity said that deals with alternative suppliers are progressing at the chancellery in Berlin.

US retail gasoline and diesel prices have already surged to records as Russia's invasion led to a tightening of the global fuels market. Ahead of the start of the summer driving season at the end of this month, rising futures tend to trickle through to the pump quickly, signaling more pain for drivers.