Oil pushed higher after a government report showed U.S. crude inventories dropped, while storm damage to a vital Black Sea export terminal worsened supply risks. 

West Texas Intermediate futures topped $115 a barrel after the U.S. Energy Information Administration said Wednesday that crude stockpiles fell 2.51 million barrels last week. Prices were already rising on the news that a major Black Sea oil export terminal halted loadings and faces weeks of disruption. Exports could be curtailed by 1 million barrels a day, further depriving the European market.

Meanwhile, European Union and NATO leaders are set to gather in Brussels on Thursday to beef up their response to Russia’s invasion of Ukraine. Ahead of the meetings, White House National Security Adviser Jake Sullivan said that the U.S. and its allies will impose further sanctions on Moscow. 

“The energy market is looking at the short-term situation and medium-term situation and it’s bleak,” said Ed Moya, senior market analyst at Oanda. “You’re looking at an elevated chance here of big swings higher and that the recent highs of $130 for WTI probably will prove not to be too hard to break.”

With the conflict dragging on, the EU is weighing a possible ban on Russian crude imports, though some member states including Germany have opposed such a move. Many buyers however are already shunning the nation’s oil, with TotalEnergies SE saying it will stop purchases by the end of the year, while Japanese refiner Eneos Holdings Inc. will halt new shipments. 

The Caspian Pipeline Consortium sea terminal said on its website that two out of three moorings sustained significant damage in recent bad weather. Russia, which sends some crude through the terminal, said Tuesday that exports could be curtailed by 1 million barrels a day, but the disruption could be bigger if all shipments through the terminal are stopped. Russian Deputy Prime Minister Alexander Novak said the repairs could take up to two months.

With many buyers avoiding Russian crude, the country’s flagship Urals grade has plunged, while some April-loading shipments were canceled. That’s adding to the signs of increased pressure on the nation’s oil market.

Nevertheless, some Russian flows are still finding takers. India’s refiners have grabbed multiple cargoes of Urals crude this month, while China’s private processors are thought to be targeting favored grades from the east of Russia.