Oil and gas terminal at the port of Odessa in Odessa, Ukraine on Saturday, January 22, 2022.
Christopher O’Keefe | Bloomberg | Getty Images
U.S. crude rose more than 8% in early trade on Sunday evening as the market continued to react to supply disruptions arising from Russia’s continued invasion of Ukraine and the possibility of a embargo on Russian oil and natural gas.
West Texas Intermediate Raw Future, US Oil Benchmark, traded up 8% at $ 125 a barrel, the highest since mid-2008. At one point the price reached $ 130 a barrel.
International standard, Brent crudeIt traded up 9% to $ 128.60, the highest level since 2008.
“Oil is increasingly likely to lead to a complete ban on Russian oil and products,” said John Gildoff, of Capitol Again. “Already high petrol prices are continuing to rise in a tumultuous fashion. In some states prices will rise very quickly to $ 5.”
US Secretary of State Anthony Blinken has said the United States and its allies are considering banning Russia’s oil and natural gas imports. Said in an interview with CNN’s State of the Union On Sunday.
“We are now looking at the possibility of blocking Russian oil imports with our European partners and allies, while ensuring that there is a more appropriate supply of oil in world markets,” he said. “This is a very lively discussion as we speak.”
Although Western sanctions against Russia have so far allowed the country to continue its energy trade, most buyers are avoiding Russian products. According to JPMorgan analysis, Russia is struggling to find 66 percent of buyers for oil.
The American average for a gallon of gas Sunday rose to $ 4, According to the AAA, in a rapid action due to the conflict. The base cost for oil is more than 50% of the price of gas that consumers put in their cars.
Reported by Pippa Stevens, Samantha Subin and Patti Dom.