Oil prices soar to their highest since 2008 due to delays in Iran talks by Reuters

© Reuters. FILEPHOTO: Taken on February 24, 2022, this figure shows a rising stock price graph and a model of an oil barrel and pump jack in front of the “$ 100”. REUTERS / DadoRuvic / Illustration / File Photo

Scott Disavino

New York (Reuters)-Oil prices have skyrocketed to their highest level since 2008 due to delays in returning Iran’s crude oil to the global market and the US and European allies considering a ban on Russian oil imports.

Negotiations to revive Iran’s 2015 nuclear deal with world powers follow Russia’s request for US assurance that the sanctions faced in the Ukrainian conflict will not impair trade with Tehran on Sunday. I fell into uncertainty. ..

In response to Russia’s request, US Secretary of State Antony Blinken said on Sunday that the sanctions imposed on Russia for the invasion of Ukraine had nothing to do with a potential nuclear deal with Iran.

Meanwhile, US and European allies are seeking a ban on Russia’s oil imports, Brinken said on Sunday, and the White House coordinated with a major parliamentary committee pursuing its own ban.

By 6:50 pm EST (2350 GMT), US West Texas Intermediate (WTI) crude rose $ 10.83 (9.4%) to $ 126.51, up $ 11.67 (9.9%) per barrel to $ 129.78. Both contracts hit a daily high. Increase rate since May 2020.

In the first few minutes of trading on Sunday, both benchmarks rose to their highest since July 2008, with Brent at $ 139.13 a barrel and WTI at $ 130.50.

Both contracts hit a record high in July 2008, with Brent at $ 147.50 a barrel and WTI at $ 147.27.

US gasoline and distilled futures rose to record highs following the rise in crude oil prices in the first few minutes after the market opened on Sunday.

“Iran was the only real bearish factor hanging in the market, but now it reaches the bottom of the tank much faster if Iran’s trading is delayed, especially if the Russian barrel has been off the market for a long time. “May be,” said co-founder Amritasen, an energy aspect, a think tank.

Analysts at JP Morgan said this week’s oil could skyrocket to $ 185 a barrel this year.

“Oil and gas weren’t the idea of ​​sanctioning because of their essential nature, but oil has long been sanctioned by private parties who don’t want to get it and ports who don’t want to receive it. The more supply chains that continue, the more buckles. ” Prior to the CERA Week meeting in Houston, Daniel Yergin, author and vice chairman of S & P Global (NYSE :), said.

Russia exports about 7 million barrels / day of oil and refined products, or 7% of the world’s supply. Some of Kazakhstan’s oil exports from Russian ports are also facing complications.

Analysts at Bank of America (NYSE 🙂 said that if most of Russia’s oil exports were cut off, there could be a shortage of more than 5 million barrels, which would increase oil prices from $ 100 to $ 200 per barrel. It means that it can be doubled.

Even if Iran reaches a nuclear deal, it will take months to restore oil flows, analysts say.

The Eurasia Group said Russia’s new demands could disrupt nuclear negotiations, but trading odds were still kept at 70%.

“Russia may intend to use Iran as a route to circumvent Western sanctions. Written guarantees permitting Russia to do so are in the midst of a full-scale war in Ukraine. Is far beyond what Washington can offer, “said Henry of Eurasia. Rome.

In support of crude oil prices, the closure of Libya’s Elfir and Sharara oil fields cost 330,000 barrels (bpd) per day, the National Olympic Committee (NOC) said on Sunday. According to US energy data, 2021 crude oil.

Meanwhile, in the United States, the average price of a gallon of gasoline reached $ 4.009 on Sunday, according to AAA, the best car association since late July 2008. Consumers pay 40 cents more a week or more ago, 57 cents more than a month ago.

AAA, which has data dating back to 2000, said US gasoline prices in pumps rose to a record $ 4.114 on July 17, 2008.

U.S. officials visited Venezuela on Saturday for a meeting with President Nicolas Maduro’s government to determine if Caracas was ready to move away from its close ally, Russia.

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