Oil hits 14-year highs on Russia oil ban talk
PHOTO: FILE
Oil prices spiked to their highest levels since 2008 on Monday amid market supply fears as the United States and European allies considered banning Russian oil imports and prospects for a swift return of Iranian crude to global markets receded.
Brent crude reached $139.13 a barrel and US West Texas Intermediate (WTI) hit $130.50 in early trading, the highest levels for the benchmarks since July 2008. By 1556 GMT, Brent had gained $4.93, or 4.2%, to $123.04 a barrel, and WTI was up $3.23, or 2.8%, to $118.91 a barrel.
“The original spikes were on embargo worries, but then a lot of countries came out and said they would not do it,” said Bob Yawger, Director of Energy Futures at Mizuho.
“Western European countries are not in a position to embargo, and that is why markets are lower now as people are starting to realise it.”
Global oil prices have spiked about 60% since the start of 2022, along with other commodities, raising concerns about world economic growth and stagflation.
US Secretary of State Antony Blinken said on Sunday the United States and European allies were exploring banning imports of Russian oil, while the White House was coordinating with committees in Congress to move forward with a US ban.
Published in The Express Tribune, March 8th, 2022.
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