Brent Crude Breaks Record, Reaches Above $110 Per Barrel
Brent crude breaks record, reaches above $110 per barrel: Crude Oil Price.
Oil prices rose to a seven-year high on Wednesday as fears of a supply disruption grew following heavy sanctions on Russian banks for invading Ukraine.
At the same time, traders started looking for alternative oil sources in the already tight market. Brent crude futures rose $5.30, or 5%, to $110.23 a barrel (0419 GMT). Its price was last seen in July 2014.
US West Texas Intermediate (WTI) crude futures rose $5.02, or 4.8%, to $108.41, the highest level since September 2013.
“Business disruptions are starting to get public attention,” said Westpac economist Justin Smirk. “Issues of trade finance and insurance – all these are affecting exports from the Black Sea.
There is a supply crunch,” he said. Explain that Russian oil exports account for about 8% of the global supply.
Exxon Mobil (XOM.N) said on Tuesday it would exit Russia’s oil and gas operations as a result of Moscow’s invasion of Ukraine.
At the same time, Western Powers have not imposed restrictions on direct energy exports. New York and the US US traders in the Gulf are away from Russian crude.
A trader in New York Harbor told Reuters people were not touching Russian oil. Some purchases can be seen but they were bought before the invasion (of Russia on Ukraine). Not much has changed after that.
Meanwhile, India’s Bharat Petroleum Corp (BPCL.NS) is seeking additional oil for April from Middle Eastern producers on fears that Western sanctions against Russia could affect deliveries of Urals crude.
At the same time, top oil exporter Saudi Arabia can sharply increase crude oil prices for Asia in April.
Get ready to lose your pockets for Petrol-Diesel, prices may increase by up to Rs 9 per liter
Petrol and diesel prices will start haunting again. Because the price of crude oil is running at a record level and the assembly elections are also about to end.
In such a situation, the increase in prices is expected to start again next week. This hike will be to bridge the gap of Rs 9 per liter created by the rise in international oil prices by $100 a barrel.
International crude oil prices are above $110 a barrel for the first time since 2014.
