Crude oil futures rose to a 14-year high on Monday (March 7) following reports that the United States and its European allies are considering an import ban on Russian oil in retaliation for the military invasion of Ukraine.
- WTI crude futures rose $3.72, or 3.2%, to $119.40 a barrel. It was the highest closing level since September 2008.
- BRENT crude futures rose $5.10, or 4.3%, to close at $123.21 a barrel. It was the highest closing level since April 2012.
Recently, U.S. Secretary of State Antony Blinken stated that the United States and its European allies are considering the possibility of stopping oil and natural gas imports from Russia. In this way, Western countries intend to stop funding the Russian military. Many criticize that the purchase of commodities from Russia indirectly finances the Russian military.
At the same time, it was reported that President Biden’s Executive Committee was ready to impose sanctions on Russian oil imports even without the cooperation of European partners.
If there is indeed a complete ban on Russian oil imports, oil prices and thus fuel prices are likely to rise even further. Russia is the world’s third-largest oil producer, and its share of the world market cannot be balanced out in a short time.
The Spot Market is Open
Tuesday, March 8, 2022