Brent Crude Oil Nears $140, May Soon Breach 2008 Levels

Oil Price Today: Since Friday, the oil prices have risen over $20 per barrel from $118 to $139. The oil prices may soon breach the all-time low level reached in 2008 due to economic depression.

Author: India.com Business Desk Edited by: Raghav Aggarwal

Published: March 7, 2022, 10:30 AM IST

https://www.india.com/business/markets-brent-crude-oil-nears-140-may-soon-breach-2008-levels-5272613/

Russian Deputy PM Says Removing Russian Oil From Market May Lead To Price Climbing To $300/Barrel

New Delhi: Owing to the reports of the US planning to ban oil imports from Russia, the Brent North Sea crude oil rose over 10 per cent and touched $139.13 per barrel briefly. Since Friday, the oil prices have risen over $20 per barrel from $118 to $139. According to a report by The Guardian, the oil prices may soon breach the all-time low level reached in 2008 due to economic depression.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, “Brent oil prices soared to a near 14-year high of $140. Oil prices soared to their highest since 2008 due to delays in the potential return of Iranian crude to global markets and as the United States and European allies consider banning imports of Russian oil.”

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All the Asian markets too were nosediving as reports of Russia Ukraine war getting more intense emerged. Sensex today was down 1,600 points, Japan’s Nikkei 225 was down 850 points or 3.27 per cent. Hong Kong’s index Hang Seng was down over 700 points and Australia’s ASX All Ordinaries was down over per cent. The gold prices in India have also breached the Rs 53,000 mark.

Kalantri added, “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. WTI prices could test $140 a barrel and Brent prices could also test $134 a barrel in the upcoming sessions. Crude oil is having support at $118–110.40 and resistance is at $129–140 in todays session. In INR terms Crude oil has support at Rs8,575-8350; while resistance is at Rs 9,000-9120.”

As of 10 AM, crude oil prices in India were up by 12 per cent to over $125 per barrel. In Indian rupees, it was near Rs 9,609, according to data on moneycontrol.

Kalantri continued, “Crude prices posted their highest weekly gains since the middle of 2020. Brent prices gained 21% and WTI posted 26% gains.”

According to The Guardian, gas prices are closely linked to oil prices. Gas prices in Europe set a new high on Friday. The prices may rise more in the coming days.

In an interview with CNN, US Secretary of State Antony Blinken said that the US and its allies are planning to ban oil imports from Russia. CNN also reported that reports have been emerging that a major oil depot in the Luhansk region in eastern Ukraine is on fire.