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EU leaders agree to ban most Russian oil imports

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Yahoo Finance Live anchors discuss brent crude oil hitting a 10-year high.

Video Transcript

BRAD SMITH: Crude oil is climbing again after the EU agreed to roll out a ban on imports of most Russian oil. Now, this is the latest move to put a dent in the Russian economy. Oil is now headed for its longest run in monthly gains in over a decade, with brent crude hitting $123 a barrel, Soz.

BRIAN SOZZI: Yeah. You know who's ringing the register right now? Warren Buffett. 91-year-old, I believe, Warren Buffett. He has that 15.3% stake in Occidental Petroleum, now valued at $10.1 billion. And, oh, guess what? He also has an 8.1% stake in Chevron. So Buffett cleaning up here as well. But still, you see oil back over to $120 a barrel. Seeing a lot of tickers like Occidental and Exxon getting a lot of play on the Yahoo Finance trending ticker page right now.

And you're really thinking that a lot of these companies are going to report very strong second-quarter earnings. And you could see investors likely start to position for that right now.

BRAD SMITH: Let's put this in context too. I mean, when we think about the European Union and the type of oil imports that they are kind of reliant on coming in from Russia, at the end of the day, it really comes down to about, what, 36% of its oil coming in from Russia. And so this-- Russia, of course, being the world's third-largest oil producer-- this is a significant move for the EU to continue to try and impose any type of economic detriments that they can amid the unprovoked invasion of Ukraine that Russia has enacted. And even furthermore from here, it begs the question for Europe, how much does this also start to pivot some of their inclinations towards a clean energy future, as well, wherever possible, when you do have kind of this vacuum of, at least, oil imports coming in from Russia right now?

BRIAN SOZZI: This is a major problem, Brad. You're starting to see earnings estimates for big companies come down across the board, but still you get the sense that this issue of higher energy prices has gotten pushed to the back burner by many strategists in the Street now. Is this factored in the market? Unclear. But if you get oil back over $120 a barrel for a sustained period-- and this is a major problem to companies-- a major, major headwind.

BRAD SMITH: Yeah, demand destruction is one thing that we've talked repeatedly with analysts about. At what price over an extended period of time would they be looking for, especially on some of the crude oil prices and brent oil prices that we're tracking right now-- at what price would they see demand destruction finally start to set in? I think we're right within that ballpark. At least $125 for brent crude oil is what we had heard previously on that front.

BRIAN SOZZI: I'll just quickly mention my friend Eric Savitz over at "Barron's." He lives out in California. Tweeted, gas prices at $7.50 a gallon for unleaded regular, Julie. $7.50 in unleaded regular in one place in California. I mean, that's huge. I mean, demand destruction, I'm going to ride a bike if that comes to [INAUDIBLE]. I know. Let's just be honest here. All right.