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Title: Oil spikes to 2008 highs as U.S., Europe mull Russian oil import ban

Mar 07, 2022 12:10AM ET

By: AnalysisWatch

Oil prices rose more than 9 percent on Monday, reaching their highest level since 2008, as the US and its European allies consider halting imports of Russian oil and delaying a potential return of Iranian oil to world markets, raising fears of supply constraints.

By 11:49 a.m., Brent crude futures were up $12.61, or 10.6%, to $130.72 a barrel, while US West Texas Intermediate crude was up $10.41, or 9%, to $126.09.

Both benchmarks rose more than $10 a barrel in the first minutes of trading on Monday, reaching their highest levels since July 2008, with Brent at $139.13 and WTI at $130.50.

Monday's intraday highs are similar to records set by both contracts in July 2008, when Brent hit $147.50 a barrel and WTI hit $147.27.

Blinken said Sunday that the US and its European allies are considering a ban on Russian oil imports and that the White House is in talks with key congressional committees that are considering imposing their own bans.

Global oil prices, along with other commodities, have risen 67% since the start of 2022, fuelling fears of global economic expansion and stagflation. China, the world's second-largest economy, is already targeting a slowdown to 5.5% this year.

Fuel prices broke records set in 2008, peaking at $3,890 a gallon for US gasoline and $4,237 a gallon for heating oil futures.

Analysts at Bank of America have said that if most Russian oil exports are cut, there could be a shortfall of 5m barrels or more, meaning oil prices could double from $100 to $200 a barrel, while analysts at JP Morgan said this week that oil prices could reach $185 a barrel this year.

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