Oil prices soared above $130, their highest since 2008 on MondayOil prices soared above $130, their highest since 2008 on Monday, as the risk of a US and European ban on Russian oil imports and delays in Iranian talks triggered tight supply fears.After the news, the US and European allies considered a Russian oil import ban.
And at the same time, delays in the potential return of Iranian crude to global markets fuelled a sharp rise in Brent crude to rise sharply again on Monday, having climbed over 20% last week."Crude prices posted their highest weekly gains since the middle of 2020.
Brent prices gained 21 per cent, and WTI posted 26 per cent gains.
Russia exports 4 million to 5 million barrels of oil daily, making it the second-largest crude exporter in the world after Saudi Arabia.
We expect crude oil prices to remain firm amid geo-political tensions and rising demand," said Rahul Kalantri, Vice President Commodities at Mehta Equities.Brent crude oil prices went over $130 per barrel in the early hours of Monday, surpassing the top 2012 mark of over $128.
The Brent price reached a historical maximum in 2008 when it stood at over $143 per barrel.The price of May futures for Brent was last trading up over 11 per cent, around $130.13 per barrel.
The April futures for WTI crude was up around 10 per cent in the early hours of Monday, about $126 per barrel.Monday's intraday highs are near record levels seen for both contracts in July 2008 when Brent hit $147.50 a barrel and WTI touched $147.27."Crude has set fresh highs amid continuing supply concerns.
US and allies are considering restricting Russian energy exports while Iran's nuclear deal got delayed due to new requests from Russia and China while Libya reported new supply disruptions.
Crude oil may remain firm unless there are efforts to de-escalate tensions," said Ravindra Rao, Head of Commodity Research at Kotak Securities.And it is not just oil; commodity prices have their strongest start to any year since 1915, according to Bank of America.Among the many movers last week, nickel rose 19%, aluminium 15%, zinc 12%, and copper 8%, while wheat futures surged 60% and corn 15%."If the West cuts off most of Russia's energy exports, it would be a major shock to global markets," Ethan Harris, chief economist at Bank of America, told Reuters.He estimates the loss of Russia's 5 million barrels could see oil prices double to $200 a barrel and lower economic growth globally.