EU leaders tackle escape route from Russian fossil fuels

Brent Crude

Brent Crude was trading  up  3.64%  at  $114.98

European Union leaders will tackle ways to wean themselves off Russian fossil fuels on Thursday and debate how quickly to do so, with countries split over whether to sanction oil and gas imports as Moscow wages war in Ukraine.

Russia’s invasion of Ukraine prompted Brussels to unveil plans this week to reduce reliance on Europe’s top gas supplier this year and end it within the decade.

How to implement those plans, not to mention how to finance them, will be a key topic under discussion at a two-day summit in Versailles, France.

A draft of the summit statement, seen by Reuters, would agree to phase out the EU’s dependency on imports of Russian gas, oil and coal, including by ramping up liquefied natural gas (LNG) imports and speeding up deployment of renewable energy. It did not set a date for the phase-out.

“Some are asking 2030, some are asking 2027, some are saying now,” an EU official said, referring to the EU member states.

The 27 countries of the EU rely on Russia for 40% of their collective gas needs, 27% of oil imports and 46% of imported coal.

Russian gas flows to Europe have continued at a steady pace since the invasion, which Russia calls a “special military operation”, but Moscow has warned that Western sanctions on its oil could prompt it to close a major gas pipeline to Europe.

With energy prices soaring across Europe, some countries want more EU action to contain costs.

“There must be a cap, a European ceiling, on wholesale gas prices,” Belgian Prime Minister Alexander de Croo told the De Standaard newspaper on Friday.

Other countries warn capping energy prices would undermine the incentive to invest in renewable energy or LNG projects to help countries quit Russian gas.

“There are no short-term fixes. That’s the problem,” a senior EU diplomat said.

RSI Stood at 61.701, the current price is trading Above All the Moving Averages. So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-BRENT CRUDE Buy: 116.20, TARGET:-117.00, STOP LOSS:- 115.80

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