(Bloomberg) — Oil fell on signs the European Union is struggling to agree on an embargo on Russian imports, and as gasoline sank from last week’s record.

West Texas Intermediate eased below $110 a barrel in early Asian trading after ending little changed in Monday’s session. People familiar with this matter say that the bloc of 27 nations is not likely to endorse the ban next week, as Hungary opposed the decision. Still, German Economy Minister Robert Habeck said he hoped to have the embargo “within days”. 

After record-breaking consumption last Monday and shrinking stockpiles, US gasoline prices fell as high as 4% during early trading. The demand remains strong, and weekly US imports from Europe of gasoline rose to an all-time high of $6.9 million in the seven-day period ending May 19. This is according to data from bills of lading.

Over the last two weeks, US benchmark oil traded within a tight range of either $110 or $110 per barrel as investors consider the impact of war in Ukraine and moves to isolate and punish Moscow. While US crude oil is likely to increase over the summer, China’s consumption has been limited by stringent lockdowns at key cities. This was to prevent coronavirus outbreaks.  

China’s State Council, a top government body chaired by Premier Li Keqiang, has moved to cushion the economic impact of the curbs, China National Radio reported. These policies include support to assist people in purchasing cars, increase domestic flights and smoother cargo transportation.

The bullish trend of oil markets remaining in backwardation is that near-term prices are trading above those older than them. Brent’s prompt spread — the gap between its two nearest contracts — was $2.55 a barrel, up from $2.08 a week ago.

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