Oil surges to highest since 2014 as more Russia sanctions loom

Oil surges to highest since 2014 as more Russia sanctions loom

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Bloomberg

Oil soared as the Russian invasion of Ukraine continued to raise the specter of major global supply disruption.

Futures in New York climbed as much as 6.1% to, the highest since 2014. Brent futures jumped by more than $6 to above $104 a barrel. The European Union is discussing the exclusion of seven Russian banks from the SWIFT messaging system, including VTB Bank PJSC. It’s the latest in a list of mounting financial penalties against Russia, one of the world’s largest oil producers.

Banks including Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co have boosted their oil price forecasts, anticipating possible supply disruptions. Consultant OilX said the probability of heavy disruption of seaborne Russian crude and products is growing, which could push prices above $150 a barrel.

To temper the rally, the US and other major consuming nations are considering releasing 60 million barrels of strategic reserves, according to people familiar with the matter. That would be equivalent to less than six days of Russian output, and traders are weighing the potential impact. The International Energy Agency was expected to hold an extraordinary ministerial meeting,