Brent oil price rises to nearly $140 as West mulls Russia ban

  • Crude oil prices jumped by as much as 10% on Monday to almost $140 a barrel.
  • Secretary of State Anthony Blinken told NBC that the US is discussing a ban on Russian oil supplies to Europe.
  • U.S. gas prices at a gas station jumped 11% in a week to about $4 a gallon, the highest level since 2008.

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Crude oil prices rose nearly 9% on Monday to top $130 a barrel for the first time since July 2008 after the US said it was considering a ban on Russian energy exports along with European leaders.

The steady rise in oil prices comes amid fears of supply cuts after U.S. Secretary of State Anthony Blinken told NBC’s Meet the Press Sunday that the U.S. is in discussions with European allies to ban Russian oil supplies.

Brent crude futures rose 8.8% to $128.60 a barrel at 2:50 am ET, while US West Texas Intermediate (WTI) futures rose 8.2% to $125.20 per barrel.

At some point in Asian trading, the price of Brent oil rose to a peak of $139.13 per barrel, after which it fell slightly. Brent and WTI crude oil futures are up about 65% since the start of the year.

According to the International Energy Agency, Russia is the third largest oil producer in the world and accounts for roughly 10% of global supplies.

Oil prices could rise to $200 a barrel as the US fails to fill a supply gap due to Russia’s oil ban, Scott Sheffield, CEO of Pioneer Natural Resource, the largest US shale oil producer, said, according to the Financial Times.

“The only way to stop Putin is to ban the export of oil and gas,” Sheffield told the FT on Friday. “[But] if the Western world announces that we are going to ban Russian oil and gas, oil will drop to $200 a barrel, maybe $150 to $200 easily.”

Rising crude oil prices have already driven up gas station prices, with U.S. gas prices jumping 11% from a week earlier to about $4 a gallon on Sunday, the highest level since 2008, according to AAA.

“Rising oil prices continue to play a leading role in pushing prices higher,” the AAA said in a press release on Thursday. “Pump prices are likely to continue rising as oil prices continue to rise.”