By Gina Lee

Investing.com – Oil was down on Monday morning in Asia, as investors took profits after the previous session’s surge. However, the European Union (EU)’s impending ban on Russian crude imports is driving global supply fears.

Dropped 2.18% at $109.12 to 12:42 PM ET (4:42 GMT) and dropped 2.04% to $106.41. Brent and WTI benchmarks jumped by about 4% on Friday. WTI reached its highest point since March 28th at $111.71.

According to Kazuhiko Saido, chief analyst at Fujitomi Securities Co Ltd. on Russian oil, “Oil markets will gain this week because of a pending ban from the European Union regarding Russian oil,” Reuters.

The EU still aims to agree to a phased embargo on Russian oil within the month in response to Russia’s invasion of Ukraine on Feb. 24.

Four diplomats said Friday that embargo will be lifted despite concern about eastern Europe’s supply.

Russia also issued sanctions against several European energy companies. U.S. gasoline prices hit a record high Monday due to falling stockpiles fueling supply concerns.

According to Fujitomi Securities’ Saito, “Oil prices remain bullish, particularly WTI’s near term contract as U.S. gasoline price continued rising amid weaker imported petroleum products from Europe.”

The supply side saw U.S. oil companies add oil and rigs in the week ending May 13, as the price of crude oil rose for the eighth week. Drillers returned to the wellpad after being prompted by the federal government.

OPEC and its allies, OPEC+, have not been able to achieve previously set output targets. The reason is the underinvestment in some OPEC member oilfields and recent Russian production losses.

According to the cartel’s latest monthly report, OPEC’s output rose by 153,000 barrels per day (bpd) to 28.65 million bpd. This falls short of the 254,000 bpd growth that OPEC has been allowed to enjoy as part of the OPEC+ arrangement.