Shafaq News/ Oil prices notched a weekly gain as supply deficit took centre stage with the EU considering a potential curb on Russian oil imports.

Brent, the global benchmark for two-thirds of the world's oil, settled 2.68 per cent higher at $111.70 a barrel at the close of trading on Thursday. West Texas Intermediate, the gauge that tracks US crude, closed 2.59 per cent higher at $107 a barrel.

Brent, the global benchmark for two-thirds of the world's oil, settled 2.68 per cent higher at $111.70 a barrel at the close of trading on Thursday. West Texas Intermediate, the gauge that tracks US crude, closed 2.59 per cent higher at $106.95 a barrel.

This is the first weekly gain this month for both benchmarks in the holiday shortened week.

A New York Times report on Thursday suggested the EU was edging close to cutting Russian oil imports in a phased manner that will give Germany and others time to line up alternative suppliers for their energy needs.

Russia's oil supply is expected to decline further amid sanctions by the US and its allies as Moscow continues its military offensive in Ukraine, according to the International Energy Agency (IEA). So far in April, about 700,000 barrels per day of production has been shut-in and losses are likely to grow to 1.5 million bpd for the entire month.

From May onwards, close to 3 million bpd of Russian production could be offline due to international sanctions and as a widening customer-driven embargo comes into full force, the IEA said on Wednesday.

The apparent gradual ban on Russian oil imports is expected to add more tightening pressure to oil markets.

Russia is the world's second-largest energy exporter. It accounts for about 10 per cent of the world’s energy output, including 17 per cent of its natural gas and 12 per cent of its oil. The US and UK have already banned Russian oil imports.