Germany gets behind embargo on Russian oil – WSJ

The Wall Street Journal reports that Germany is now backing an EU ban on Russian oil, which could pave the way for an EU-wide embargo.

"German representatives to the EU institutions lifted the country’s objection to a full Russian oil embargo provided Berlin was given sufficient time to secure alternative supplies," WSJ cited two government officials saying today.

Germany, which initially opposed an EU-wide embargo on Russian oil, is seen diversifying its oil imports to wean itself off Russian oil imports. Germany looks to take over the partly Rosneft-owned Schwedt refinery in northern Germany, its Economy Minister Robert Habeck said in a video on Twitter yesterday.

Habeck said on Tuesday that Germany is “very, very close” to wean itself off Russian oil after striking an energy partnership deal with Poland.

Germany relied on Russia for a about third of its oil imports, before Russia's invasion of Ukraine. That was reduced to a quarter a month ago, and then halved to about 12% now. Almost all of it goes to Schwedt, which, according to Habeck, has been reluctant to answer Germany's calls to replace its crude intake with non-Russian oil.

Now that Germany is backing an embargo, it would really only be Hungary left in the EU pulling the breaks.

Growing expectations of an EU-wide embargo has contributed to keep crude prices elevated this week, largely countering news of Covid-19 lockdowns and lower oil demand prospects in China.

Front-month ICE Brent jumped more than $2/bbl higher in 10 minutes today, following media reports of Germany’s backing of an embargo.