Oil Prices Spike as US Seeks Massive Crude Purchases

Oil Prices Spike, as U.S. Seeks, Massive Crude Purchases.

Al Jazeera reports that the price of oil has jumped to the highest it's been since late March.

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Prices were reportedly supported by OPEC approving a limited production increase in response to the European Union's proposed ban on imports from Russia.

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This week, the EU announced a plan to ban Russian crude and refined fuels over the next year to increase pressure on Russia to end its war with Ukraine.

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This week, the EU announced a plan to ban Russian crude and refined fuels over the next year to increase pressure on Russia to end its war with Ukraine.

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Al Jazeera reports that the EU has also targeted insurers with the goal of impairing Russia's ability to transport oil around the world.

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Al Jazeera reports that the EU has also targeted insurers with the goal of impairing Russia's ability to transport oil around the world.

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A United States Energy Department official told CNN that the Biden administration plans to seek bids for 60 million barrels of crude.

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A United States Energy Department official told CNN that the Biden administration plans to seek bids for 60 million barrels of crude.

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The massive purchase comes as an attempt to replenish the nation's shrinking emergency oil reserve.

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Al Jazeera reports that oil has skyrocketed over 40% this year.

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Al Jazeera reports that oil has skyrocketed over 40% this year.

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The surging price has been driven by Russia's war disrupting flows, rapidly rising inflation and major central banks tightening policies.

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The surging price has been driven by Russia's war disrupting flows, rapidly rising inflation and major central banks tightening policies.

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While OPEC has agreed to increase production by 432,000 barrels a day, the group only managed an increase of 10,000 barrels a day in April.

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According to Al Jazeera, the nominal increase in April indicates the difficulty the group is having with increasing output.