Crude oil prices jumped by as much as 18% on Monday to almost $140 a barrel. Secretary of State Antony Blinken told NBC the US was discussing a ban on Russian oil with Europe. US gas prices at the pump jumped 11% on-week to around $4 a gallon — the highest level since 2008. Loading Something is loading.
Crude oil prices surged nearly 9% on Monday to top $130 a barrel for the first time since July 2008, after the US said it was considering a ban on Russia’s energy exports together with European leaders.
Oil’s relentless price rise comes on the back of fears about a supply crunch after US Secretary of State Antony Blinken told NBC’s “Meet the Press” on Sunday that the US was in discussion with European allies about a ban of Russian oil.
Brent crude oil futures were up 8.8% at $128.60 a barrel at 2:50 a.m. EST, while US benchmark West Texas Intermediate (WTI) oil futures were up 8.2% at $125.20 a barrel.
At one point in Asian trading, Brent crude rose to a peak of $139.13 a barrel before paring some of those gains. Both Brent and WTI crude oil futures are up about 65% in the year to date.
Russia is the world’s third-largest oil producer, and accounts for roughly 10% of global supply, according to the International Energy Agency.
Oil prices could rise to $200 a barrel as the US would not be able to meet the supply shortfall from a Russian crude oil ban, said Scott Sheffield, CEO of Pioneer Natural Resource, a top US shale oil producer, the Financial Times reported.
“The only way to stop Putin is to ban oil and gas exports,” Sheffield told the FT on Friday. “[But] if the western world announced that we’re going to ban Russian oil and gas, oil is going to go to $200 a barrel, probably — $150 to $200 easy.”
Surging crude oil prices have already sent prices up at the pump, with US gas prices jumping 11% from a week ago to around $4 a gallon on Sunday — the highest level since 2008, according to the AAA.
“Increasing oil prices continue to play a leading role in pushing prices higher,” the AAA said in a Thursday press release. “Pump prices will likely continue to rise as crude prices continue to climb.”
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