U.S. crude oil surged greater than 7 p.c in Sunday night commerce because the market continued to react to provide disruptions stemming from Russia’s ongoing invasion of Ukraine and the potential of a ban on Russian oil and pure fuel.
West Texas Intermediate crude futures, the U.S. oil benchmark, traded 7.34 p.c larger to $124.17 per barrel. At one level Sunday night, the value rose to $130.50, its highest since July 2008, earlier than retreating.
The worldwide benchmark, Brent crude, spiked 8.54 p.c larger to $128.20. Brent hit a excessive of $139.13 at one level in a single day, additionally its highest since July 2008.
“Oil is rising on the prospect for a full embargo of Russian oil and products,” mentioned John Kilduff of Again Capital. “Already-high gasoline prices are going to keep going up in a jarring fashion. Prices in some states will be pushing $5 pretty quickly.”
The U.S. and its allies are contemplating banning Russian oil and pure fuel imports, Secretary of State Antony Blinken mentioned in an interview with CNN’s “State of the Union” on Sunday.
“We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets,” he mentioned. “That’s a very active discussion as we speak.”
Meanwhile, Speaker Nancy Pelosi mentioned in a letter to Democratic colleagues on Sunday night that the U.S. House of Representatives is “exploring strong legislation” to ban the import of Russian oil — a transfer that will “further isolate Russia from the global economy.”
“Our bill would ban the import of Russian oil and energy products into the United States, repeal normal trade relations with Russia and Belarus, and take the first step to deny Russia access to the World Trade Organization. We would also empower the Executive branch to raise tariffs on Russian imports,” she wrote.
While Western sanctions in opposition to Russia have to this point allowed the nation’s vitality commerce to proceed, most consumers are avoiding Russian merchandise already. Sixty-six p.c of Russian oil is struggling to search out consumers, in keeping with JPMorgan evaluation.
The U.S. common for a gallon of fuel topped $4 on Sunday, in keeping with AAA, in a fast transfer because of the battle. The underlying value of oil accounts for greater than 50 p.c of the price of fuel that customers put of their automobiles.
Pippa Stevens, CNBC, Samantha Sabin and Patti Domm, CNBC contributed.