Oil price has increased more than 60 percent since the start of 2022, raising concerns about world economic growth and stagflation
By Eugene Onyeji
Oil prices spiked to highest levels since 2008 as Britain and the US mull banning oil imports from Russia as the Ukraine war deepens.
In the early hours of trade on Monday, Brent crude reached $139.13 a barrel and US West Texas Intermediate (WTI) hit $130.50, both benchmarks striking their highest since July 2008, fanning supply fears in an already volatile market.
Brent crude oil price jumped as much as 18% before paring gains. By noon, prices had eased back, with Brent up 6.3 percent at $125.55 per barrel and WTI up 6.7 percent at $123.37.
The US has yet to decide on import ban, with the timing and scope of any move still fluid.
US Secretary of State Antony Blinken, on Sunday, said the United States and European allies were exploring banning imports of Russian oil, while the White House was coordinating with Congressional committees to move forward with a US ban.
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While the west has so far refrained from targeting the Kremlin’s energy sector, the announcement has sparked fears that President Vladimir Putin could retaliate by cutting European gas supplies.
Global oil prices have spiked more than 60 percent since the start of 2022, along with other commodities, raising concerns about world economic growth and stagflation.
China, the world’s No. 2 economy, is already experiencing slower growth of 5.5 percent this year.
Analysts have already warned that a prolonged war could see Brent moving above the $150 per barrel mark.
Russia is the world’s second top producer of crude oil after Saudi Arabia, and supplies about a third of Europe’s needs.
Russia’s economy is heavily dependent on commodity exports and a potential ban risk pushing up prices.
