The US is considering a ban on imports from Europe
Oil prices in Asia rose 18% to $130 a barrel after rumors that the US was considering a ban on Russian oil imports sparked a worldwide market reaction.
At least initially, the Biden administration is mulling an embargo on Russian oil supplies to the US without the assistance of European allies.
Brent oil rose by 18%
Brent crude hit a new high of $130 per barrel on Monday, but did not surpass the severe volatility seen when WTI went below zero in 2020.
If Russian supplies persist, the global benchmark may end the year around $185 a barrel, according to JPMorgan Chase & Co.
“We still have a lot of twists and turns ahead of us,” said Mark Muller, Vitol Group’s Asia president. However, I believe the globe is already taking into consideration the reality that the Western Hemisphere will not be able to acquire a major amount of Russian oil.
Brent’s movements were eclipsed by those of the 2008 global financial crisis and the coronavirus pandemic’s drop in demand. As they strive to overcome financial restrictions, traders, shippers, insurers, and banks are becoming increasingly leery of financing purchases of Russian barrels.
Given the rise in global tensions, uncertainty, and instability, pinpointing the peak of the oil rally would be tough. “( The rise is now supply-driven, which may send prices beyond that level, “said John Driscoll, founder of JTD Energy Services in Singapore. “During the 2008/2009 financial crisis, demand plummeted by roughly $150. The spike is now supply-driven, which could send prices over that level,” he added.