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U.S. crude oil jumps to $125 a barrel, a 13-year high on possible Western ban of Russian oil


The Port of Odessa oil and gas terminal in Odessa was inaugurated on Saturday, January 22, 2022.

Christopher Occhicone – Bloomberg | Bloomberg | Getty Images

U.S. crude oil jumped more than 8% during early trading on Sunday night, as the market continued reacting to supply disruptions resulting from Russia’s ongoing invasion in Ukraine and possible bans on Russian oil or natural gas.

West Texas Intermediate crude futuresThe benchmark oil price in the United States, XL, was 8% higher at $125 per barrel. This is the highest level since mid-2008. One point, the oil price was above $130 per barrel.

This is the international standard Brent crudeIt traded at $128.60, 9% more than the previous high price in 2008.

John Kilduff, of Again Capital said that oil prices are rising due to the possibility of a complete embargo on Russian oil and other products. The already high prices of gasoline will only continue rising in a shocking manner. In some places, prices will reach $5 very quickly.”

According to Secretary of State Antony Blinken, the U.S. is considering banning Russian natural gas and oil imports. said in an interview with CNN’s “State of the Union”Sunday

He said that he was now in contact with European allies and partners to discuss the possibility of looking at the issue of Russian oil import bans, while ensuring there are sufficient oil supplies on the world market. It’s currently a lively discussion.

Western sanctions on Russia have permitted the country to trade in energy, but most foreign buyers avoid Russian products. JPMorgan’s analysis shows that 66% of Russian oil has difficulty finding buyers.

This is the average U.S. gallon of fuel topped $4 on SundayAAA says that the move was a quick one due to conflict. Consumers pay more than 50% for their gasoline because of the oil’s underlying costs.

—With reporting by Pippa Stevens, Samantha Subin and Patti Domm.