Oil price rises to highest level since 2008 on talk of Russia oil sanctions

Oil price rises to highest level since 2008 on talk of Russia oil sanctions

The price of Brent oil soared to almost $140 a barrel, its highest price since 2008, in early trading on Monday, after reports that western countries were discussing a possible embargo on crude supplies from Russia, the world’s second-biggest exporter.

The price spike came after US secretary of state Antony Blinken said on Sunday that Washington was in “very active discussions” with European allies about a ban on Russian oil exports.

The move would signify a new escalation in the west’s efforts to punish Russia — whose economy remains heavily dependent on oil and gas exports — for its invasion of Ukraine. It also marks a reversal for the White House, which has repeatedly said new sanctions would not target Russian oil and gas flows.

Russia exports almost 5m barrels a day of crude, or about 5 per cent of total world demand, and is a crucial supplier of refined petroleum products to Europe and elsewhere.

Analysts have said the loss of Russian supplies could push prices to record highs by removing barrels from an oil market that has been left exceptionally tight by rising post-pandemic consumption and tepid supply growth.

“This rocket ride for crude shows that despite the rhetoric by a few that