Oil slips below $114 as EU split on Russian ban

Oil slipped below $114 a barrel on Tuesday, giving up some of the previous day’s 7% surge, as European Union members disagreed on a potential oil embargo on Russia, although persistent supply risks limited the decline.

According to Reuters, European Union foreign ministers are split on whether to join the United States in banning Russian oil. Some countries, including Germany, say the bloc is too dependent on Russia’s fossil fuels to withstand such a step.

Brent crude fell $1.92, or 1.7%, to $113.70 a barrel at 0920 GMT. U.S. West Texas Intermediate crude slipped $2.82, or 2.5%, to $109.3. Both contracts had settled up more than 7% on Monday.

Oil also slipped as the U.S. dollar strengthened after comments from U.S. Federal Reserve Chair Jerome Powell on Monday that flagged a more aggressive tightening of monetary policy than previously anticipated.

A strong dollar makes crude more expensive for other currency holders and tends to weigh on risk appetite.

Brent hit $139 a barrel, the highest since 2008, earlier this month. Threats to supply from the war in Ukraine and attacks by Yemen’s Iran-aligned Houthi group on Saudi energy and water desalination facilities limited the downside.