By Stephanie Kelly

(Reuters] – After rising by more than 5% during the previous session due to Russian sanctions on certain European gas companies, oil prices eased in Asian early trading on Thursday.

Russia sanctioned 31 companies that are based within countries that have imposed sanctions against Moscow following Russia’s invasion of Ukraine in February.

The market was uneasy as a result. At the same time, Russian gas flowing to Europe via Ukraine decreased by quarter. This was the first disruption to exports through Ukraine since the invasion.

By 0013 GMT, futures declined 9 cents to $107.42 per barrel. WTI crude oil futures dropped 13 cents per barrel to $105.58

Due to supply worries after Russia’s February invasion of Ukraine, prices have increased by more than 35% this year.

The European Union continues to negotiate over an embargo against Russian oil. Analysts believe this would tighten the market, and shift trade flows. It is necessary to have unanimous support for the vote, however it has been delayed because Hungary opposed it.

Fears about China’s demand destruction have constrained price increases as China attempts to curtail the spread coronavirus.

Stephen Innes managing partner of SPI Asset Management stated, “Until we have some substantial policy support in China or policymakers adopt a strategy other than COVID (which appears very unlikely), oil price could stay capped near term.”