Oil prices settled slightly higher on Wednesday after EU leaders agreed to a phased ban on imports of Russian oil, while the end of the new crown epidemic seal in Shanghai, Asia, which could boost already tight market demand. Crude oil contracts have been steadily higher for weeks due to reduced Russian exports as a result of EU and U.S. sanctions and limited purchases of Russian crude by India and China. Russia is the world's largest exporter of crude oil and fuel.

Brent crude futures closed at $116.29 a barrel, up $0.69, or 0.6 percent, while U.S. crude futures closed at $115.26 a barrel, up $0.59, or 0.5 percent.

On Monday, EU leaders agreed in principle to cut Russian oil imports by 90 percent by the end of the year, the toughest EU sanctions since Russia's invasion of Ukraine. "The impact of the sanctions going into effect is huge," said Bill Farren-Price, head of Enverus in London, "If their target for sanctions is basically met, Russia's (exports) will be reduced by about 3 million barrels a day, and not all of that oil can be resold to other places, so the impact is pretty dramatic." Sanctions on Russian crude oil will be phased in over six months, and sanctions on refined products will be phased in over eight months. The ban exempts Russia's pipeline oil exports as a concession to Hungary and two other landlocked Central European countries.

Four OPEC+ sources from the Organization of the Petroleum Exporting Countries (OPEC) and its allies told Reuters that the idea of suspending Russia's participation in the oil supply deal was not discussed at a technical committee meeting held on Wednesday.

However, international oil prices were shockingly weak on Thursday, with U.S. crude once falling more than 3 percent to a new low of more than a week to $111.64 per barrel, amid reports that Saudi Arabia would increase oil supplies if Russian output fell. Market concerns about tight supply cooled and the likelihood of a short term technical top near the 120 handle increased.

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