Oil prices have reached their highest level since 2008, with Brent crude nearing $120 U.S. a barrel, as buyers continue to shun Russian fuel following the invasion of Ukraine.
Both Brent and West Texas Intermediate (WTI) crude oil touched 14-year highs as buyers continue to avoid Russia and try and navigate financial sanctions. Prices for refined oil products are also soaring.
West Texas Intermediate crude oil for April delivery rose 2.4% to $113.21 U.S. a barrel in London trading after surging as high as $116.57 U.S. Brent crude oil for May settlement gained 1.8% to $114.91 U.S. a barrel.
Surging oil costs are adding to the inflationary pressures on the global economy, boosting the prices of everything from gasoline at the pump to diesel used by industrial consumers.
Despite the turmoil, the Organization of Petroleum Exporting Countries and its allies (OPEC+) are sitting on the sidelines. The group stuck with the 400,000 barrel-a-day production increase that was scheduled for April at its latest meeting.
The International Energy Agency has warned that global energy security was under threat and a planned emergency release of crude reserves by the U.S. and others has done little to quell market fears.
Russia failed to sell any of the crude oil it was offering for a third time and values of the country’s flagship Urals crude have collapsed.
The U.S. and its allies have so far refrained from sanctioning Russia’s crude oil exports due to concerns about the impact of rising energy prices on consumers, but trade is seizing up as banks pull financing and shipping costs spike higher.
Even before the invasion, North American retail gasoline was at its highest level since 2014 in both the U.S. and Canada
