International oil prices surpassed the $130-per-barrel mark on the 6th (local time) due to Russia’s invasion of Ukraine. This is the highest price since July 2008, when the global economic crisis was in full swing.
Brent crude oil soared 18% during the day to trade at $139.13, while West Texas crude oil jumped to $130.50. Reuters reported that these prices are the highest since July 2008, respectively.
The U.S. is considering banning Russian oil imports as part of economic sanctions against Russia, and news that Iran’s nuclear negotiations are also delayed is interpreted to have affected oil prices.
U.S. Secretary of State Tony Blinken said he was discussing a ban on Russian oil imports with European allies as one of the additional sanctions against Russia for invading Ukraine. We are adding sanctions (on Russia) every day, he said on CNN. “We are doing this in cooperation with the European Union, and if there is a disagreement, resolving it is part of our work.”
Analysts predicted that Iran’s crude oil exports will resume if the nuclear deal with Iran is concluded, but negotiations are being delayed and that it will take months to resume exports of Iranian crude oil even if it is concluded.
Russia exports about 7 million barrels of oil and oil refineries a day, accounting for about 7% of the world’s supply. JP Morgan analysts predicted that oil prices are likely to rise to $185 a barrel this year.
