Oil prices rise to 2008 highs as U.S.A., Europe mull ban on Russian oil imports

Brent crude oil soared to almost $139 a barrel on Monday, its highest since 2008, as the U. S. and its European allied mull a Russian oil import ban and delays in the possible return of Iranian crude to global markets fuelled by tight supply fears.

Before easing a while, Brent crude hit a high of $139.13 per barrel. Around 9:30 am, Brent May futures on the Intercontinental Exchange traded at $128.46, up by 8.76% from the previous close.

West Texas Intermediate’s (WTI) April contract jumped by 7.47% to $124.32 a barrel on the NYMEX.

Monday’s intraday highs are near record levels seen for both contracts in July 2008 when WTI hit $147.27, and Brent hit $147.50 a barrel.

The European Allies of the U.S and the United States are exploring a ban on importing Russian oil, U.S Secretary of State Anthony Blinken said on Sunday. The White House coordinated with vital Congressional committees moving forward with their own Russian oil import ban.

Global oil prices have shot up by over 60% since the start of 2022, along with other commodities, raising concerns about stagflation and world economic growth. The world’s No. 2 economy, China, is already aiming for slower growth of 5.5% this year.

Fuel prices in the U.S have surpassed 2008 records, with U.S. heating oil futures at $4.237 per gallon and gasoline at a high of $3.890 per gallon.