Brent Crude Surges 8%, Highest Since July 2008

While the commodities disruption looms and shall not go away soon and in the backdrop of it at the time of writing this report, brent crude was up by over 7% at $126.8 per barrel, while WTI crude also gained by 6.73% to $123.5 per barrel.

Brent Crude Surges 8%, Highest Since July 2008

In the previous session, crude prices climbed to near $140 per barrel at one point overnight, the highest price since 2008 as traders remained concerned due to the fall-out from Russia-Ukraine war. Also, there looms possibility of a ban on Russian natural gas and oil.

"Oil is rising on the prospect for a full embargo of Russian oil and products," said John Kilduff of Again Capital. "Already high gasoline prices are going to keep going up in a jarring fashion. Prices in some states will be pushing $5 pretty quickly."

Reportedly, the US and its allies are considering to a put a ban on Russian oil as well as other natural gas imports, Secretary of State Antony Blinken said in an interview with CNN's "State of the Union" on Sunday.

"We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets," he said. "That's a very active discussion as we speak."

So, far the sanctions imposed on Russia have allowed for the country's energy trade, nevertheless most buyers are avoiding it already. Sixty-six percent of Russian oil is struggling to find buyers, according to JPMorgan analysis.

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