Oil prices soar to 13-year high amid potential Western ban on Russian oil following Ukraine invasion Business News

Oil prices climbed to their highest level since mid-2008 on Sunday as the global market continued to reel from Russia’s assault on Ukraine.

The cost of Brent crude – considered the international benchmark – rose more than 9% to just over $129 (£98) in the first few minutes of trading on Sunday, according to various reports. Meanwhile, West Texas Intermediate (WTI) crude rose 9.4% to $126.51.

Both reached their highest values ​​in July 2008 when Brent rose to $147.50 a barrel and WTI to $147.27.

The figures came after Antony Blinken, the US secretary of state, said the Biden administration and its European allies were exploring the possibility of a Russian oil ban as a way to further punish Vladimir Putin for his decision to invade. Ukraine.

Meanwhile, the UK could decide this week to increase sanctions against Russian oil and gas industries – as reported The Independent this week – as part of efforts to isolate Putin’s regime globally.

Europe depends on Russia for crude oil and natural gas, but has become more open to the idea of ​​banning Russian products in the past 24 hours, a source familiar with the talks told Reuters.

The White House is also discussing with the Senate Finance Committee and the House Ways and Means Committee a possible ban, the source added.

“We are currently in very active discussions with our European partners on banning the import of Russian oil into our countries, while of course, at the same time, maintaining a stable global oil supply,” Mr. Blinken in an interview on NBC. Meet the press.

He said he also discussed oil imports with President Biden’s cabinet over the weekend.

The price of petrol and diesel is displayed on a board outside an Esso petrol station in Storrington, southern England

(AFP via Getty Images)

While Western sanctions on Russia have so far allowed the country’s energy trade to continue, most buyers are already avoiding Russian products. According to JPMorgan’s analysis, 66% of Russian oil is struggling to find buyers.

There have been demonstrations in support of the boycott in Britain this week, including on Sunday when a ship carrying Russian oil moored in the northwest of England had to leave after workers made it clear that they would not unload the cargo.

A similar scene played out in Kent on Friday when dockworkers refused to unload a Russian gas tanker, due to arrive at a port in the Thames Estuary, causing it to be diverted.

The Boris Vilkitskiy was heading for the Isle of Grain, carrying liquefied natural gas bound for Centrica, owner of energy company British Gas.

“Oil is rising on the prospect of a full embargo on Russian oil and products,” Again Capital’s John Kilduff told CNBC of the situation in the United States. “Already high gasoline prices will continue to rise shockingly. Prices in some states will push $5 fairly quickly.

The same is happening on UK forecourts, after the average cost of a liter of petrol hit a new high of 153.50p on Thursday this week – up from 152.20p the day before.

The RAC urged the Treasury to secure support after the same figures, from Experian Capitalist, also showed the cost of diesel rose from 155.79p to a record 157.47p over the same period.

Russ Mould, chief investment officer at AJ Bell, told the PA news agency: “With Russia’s invasion of Ukraine now in its second week, stock markets continue to grapple with the threat of even higher inflation and a potential economic slowdown.”

And he added: “At some point consumers will no longer be able to afford even higher prices, so businesses face a significant demand test.”

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This notice was published: 2022-03-07 01:50:03

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