Crude oil surges to 14-year highs on delays in Iranian talks

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Highlights

  • Crude oil prices reached to nearly 14-year highs.
  • The prices recorded the biggest daily percentage gains since May 2020.
  • The Western allies are considering options to ban imports of Russian oil.

Brent Crude Oil prices surged to US$139.13/bbl on Monday, the highest since 2008 as the ongoing crisis between Russia and Ukraine intensifies. The Western allies including the US and European Union are considering banning imports of Russian oil. At the same time, delays in the potential return of Iranian oil into the global market have further sparked the crude oil rally.

Also Read: Crude oil slides from multi-year highs as Iran talks rev up

Supporting oil price, a shutdown of Libya’s El Feel and Sharara oilfields also resulted in the loss of 330,000bpd, the country’s National Oil Company stated on Sunday.

Source: Eikon Refinitiv

On Monday, May delivery Brent Crude oil futures last traded at US$127.22 per barrel up 7.79%, while April delivery WTI crude oil futures traded 6.56% up at US$123.27 per barrel as of 07 March 2022 at 12:14 PM AEDT.

Source: Eikon Refinitiv

The US oil benchmark soared nearly 13% to hit US$130 per barrel before paring some gains to trade around US$125 per barrel. The prices recorded the biggest daily percentage gains since May 2020.

Must Read: Crude oil rises on fresh Russia-Ukraine war warnings

On Sunday, Antony Blinken, the US secretary of state said that the Western allies are considering banning Russian oil and natural gas imports, in an effort to ramp up sanctions against Russia for its invasion of Ukraine.


 


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