Oil stocks are in focus today as a number of petroleum providers trend in the green. Indonesia Energy (NYSE:INDO), Houston American (NYSE:HUSA) and Imperial Petroleum (NASDAQ:IMPP) are up today following the European Union’s proposed ban on Russian oil imports.
So, what do you need to know about this news?
Well, today European Commission President Ursula von der Leyen proposed banning all Russian oil imports by the end of the year. In a speech delivered to the European Parliament, she said, “We now propose a ban on Russian oil. Let’s be clear: it will not be easy. But we simply have to work on it. We will make sure that we phase out Russian oil in an orderly fashion, to maximize pressure on Russia, while minimizing the impact on our own economies.”
The move would come as part of the sixth round of sanctions against Russia following its invasion of Ukraine. A number of oil companies are seeing the benefits from this latest proposal.
Oil Stocks Soar on Proposed Russian Oil Ban
As per the proposal, crude oil supply from Russia would be phased out within the next three months, while refined oil imports would cease by the end of the year. The news immediately lifted Brent oil prices, which were already 40% than higher than at the start of the year.
As a result, a number of major oil companies are seeing gains in the market today. INDO and HUSA are up about 3% and 6%, respectively. IMPP is proving the big winner today, however, as it is currently trending up 12%.
As the conflict in Ukraine continues to wear on, it seems oil prices will remain in focus.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.