The price of oil to its peak point in much more than a decade on Monday, as the Biden government considers imposing an embargo on Russian imports in reaction to Ukraine’s aggression a decision that might further destabilize the global energy system.
Overnight, Brent crude oil reached over $140 per barrel as the market responded to the potential of a suspension. As of early Monday morning, the worldwide price benchmark was trading at around $125.
The world’s biggest gathering of energy industry leaders kicks off in Houston, as Russia’s invasion of Ukraine delivers an oil price shock to the global economy and embattled executives face growing criticism for the industry’s role in climate change https://t.co/5OLUFFog9U pic.twitter.com/IZ3Xd5auMb
— Reuters (@Reuters) March 7, 2022
The US benchmark, West Texas Intermediate crude oil, was trading at $121 a barrel after briefly exceeding $130 on Sunday night. Prices have risen to their highest level since 2008.
The rising oil crisis has frightened Wall Street traders, driving US stock futures down significantly before of Monday’s opening price. Dow futures were dropped over 200 points, while S;P 500 and Nasdaq futures were both down nearly 1%.
Other goods are seeing price increases as a result of the Russia-Ukraine war. On Monday, gold gained 1% to about $2,000 per ounce, while silver gained roughly 0.5 percent to $25.94.
Prices fell as Germany stated it had no intentions to block Russian energy supplies, adding to market uncertainty.
Diesel futures in the United States and Europe reached levels that have not been seen for years, and petroleum contracts reached levels that have not been seen for more than a year. Shell Plc is restricting heat oil trade in some regions of Germany as the supply of the fuel runs low.
Officials from Ukraine and Russia will be meeting again for the third round of negotiations. However, with Russian President Vladimir Putin stating that Kyiv should comply to his requirements in order for the conflict to halt, expectations for success in the meeting later Monday seem poor. Over the weekend, U.S. Secretary of State Antony Blinken told NBC that the White House is in “very ongoing discussions” with Europe about imposing a ban to put economic pressure on Putin, but that most purchasers are refusing to acknowledge it nonetheless, likely to result in an economic blockade in all but name.