Crude oil prices surge to $130 per barrel amid Russia-Ukraine conflict; Highest since 2008

The Brent crude oil prices surged to the highest level since 2008, touching the price count at $130 per barrel amid the Russia- Ukraine conflict. This count surpassed the earlier highest count of $128 which was reported in 2012. After the US stated it was exploring a possible obligation on Russian supply with its allies, oil prices rose to their highest level since 2008.

There were talks to lift up Iran’s 2018 nuclear deal with world powers stalled after Russia demanded a promise from the US the sanctions it faces over the Ukraine conflict will not harm its trade with Tehran. During the period, China has also raised additional demands. Further, as a response to Russia, needs, and demands, US secretary Antony Blinken stated that the sanctions of Ukraine had no bearing on a possible deal with Iran. 

In addition to the surge that has been witnessed recently, there occurred a shake in the global economy also. Energy markets have rocked ever since Russia was feared to invade Ukraine. As per the report, stock markets in Asia fell on Monday, with Japan’s Nikkei 2.7% lower and the Hang Seng in Hong Kong down by 3%.

Brent rose $11.67, or 9.9%, to $129.78 a barrel by 6:50 p.m. EST (2350 GMT), while U.S. West Texas Intermediate (WTI) crude rose $10.83, or 9.4%, to $126.51, putting both contracts on track for their highest daily percentage gains since May 2020.

Read Also: Crude oil price rise weigh on Indian Rupee

As a result, the price of petrol and diesel in the UK has soared, and now averages 153p and 157p a liter respectively. Meanwhile, a jump in the price of gas amid the Ukraine conflict has added to worries that the annual average Uk household energy bills could reach euro 3000. Gas prices in Europe and the UK have risen sharply in recent days amid fears of a drop in Russian supplies.

On the other hand, the average price of a gallon of gasoline hit $4.009 in the US,  according to AAA, an automobile association, which is the highest since late July 2008. Consumers are paying 40 cents more than a week ago, and 57 cents more than a month ago.