LAST UPDATE: 10.43
Oil is moving higher as the US moves one step closer to imposing a ban on Russian oil imports after the invasion of Ukraine, intensifying economic pressure on President Putin.
Futures contracts in New York exceeded $ 121 a barrel and reached the highest level since 2008.
The effects of the war have turned markets upside down, driving everything from wheat to nickel and gas to soaring as citizens prepare for an inflation shock.
Oil has risen more than 30% since the invasion, and banks estimate that prices will continue to rise.
US lawmakers have outlined bipartisan legislation banning US oil imports, with EU governments reluctant to decide whether to participate.
Total Energies became the first major oil company to announce that it would no longer buy Russian crude, although most buyers have already imposed an informal embargo.
US Secretary of State Anthony Blinken said at the weekend that the White House was in “active discussions” with Europe over a ban on Russian oil, raising prices on Monday, with Brent reaching nearly $ 140 a barrel.
OPEC Secretary-General Mohammad Barkindo has warned that the world does not have enough oil production capacity to replace Russia’s contribution to crude markets.
The WTI April delivery is enhanced 1.99% στα $ 121.78 the barrel while the brent May delivery is rising 2.55% στα $ 126.31 the barrel.
Jump up to 32% for gas
Gas futures in Europe, meanwhile, rose to 32% on Tuesday morning, following threats from Russia’s deputy prime minister and energy minister that Moscow could even cut off gas supplies to Europe via the existing Nord Stream pipeline.
The Russian threat came in response to the harsh sanctions imposed on Russia for its invasion of Ukraine, but no decision has been made at this time.
Europe’s dependence on Russian hydrocarbons is a key factor in the intense debate of Western leaders over their reaction to Russia’s invasion of Ukraine.
The European benchmark, the Dutch gas contract, traded earlier in the morning in Amsterdam at a profit. 18%στα 270 euros the megawatt hour.
Source: Capital
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