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- Oil prices jump to their highest price since 2008 as US and European allies consider banning imports of Russian oil
- Brent crude hit US$139.13 (A$187) a barrel at the start of trading on Monday a jump of more than $20 on Friday’s close
- Energy markets have taken a knock in recent days as a result of supply concerns caused by Russia’s invasion of Ukraine
- Additionally, US gasoline prices have also jumped 11 per cent over the past week to the highest since last July 2009
Oil prices have jumped to their highest price since 2008 as US and European allies consider banning imports of Russian oil.
Brent crude hit US$139.13 (A$187) a barrel at the start of trading on Monday a jump of more than $20 on Friday’s close.
Energy markets have taken a knock in recent days as a result of supply concerns caused by Russia’s invasion of Ukraine. Consumers have already felt the impacts of the higher costs as fuel prices and household bills jump.
Talks to revive Iran’s 2015 nuclear deal with world powers were mired in uncertainty on Sunday after Russian demand.
Additionally, US gasoline prices have also jumped 11 per cent over the past week to the highest since last July 2009.
Analysts from JP Morgan said this week oil could soar to US$185(A$249) per barrel.
“The idea was not to sanction oil and gas because of their essential nature, but oil is getting sanctioned by private actors not wanting to pick it up or ports not wanting to receive it and the longer this goes on the more supply chains are going to buckle,” Author and Vice Chairman of S&P Global Daniel Yergin told Reuters.
Russia exports around seven million barrels per day of oil and refined products or 7 per cent of global supply.
Analysts at Bank of America said if most of Russia’s oil exports are cut off, there could be a five million barrel or larger shortfall, meaning oil prices could double.
