Crude Oil Hits 13-Year High, Sells for $130 Per Barrel as Western Economies Move to Ban Russian Oil

Crude Oil Hits 13-Year High, Sells for $130 Per Barrel as Western Economies Move to Ban Russian Oil

  • The Nigerian economy may breath a sigh of relief as oil bounces back, selling at a 23-year high of $130 per barrel
  • This is driven by the escalating Russian invasion of Ukraine as western economies consider banning Russian oil and gas
  • The US Secretary of State, Anthony Blinken and Speaker of House Representatives said the US is currently in talks with its European allies to ban Russian oil and gas

Nigeria may be in for a windfall as the escalating Russian invasion of Ukraine has driven crude oil to a 13-year high, selling at $130 per barrel.

The US crude soared about 7 per cent on Sunday evening as the market continued to react sharply to supply troubles amid Russia’s ongoing invasion of Ukraine and the thought that Russian oil and gas may be banned by the European and American markets, according to a CNBC report.

Crude oil prices surges amid Russia-Ukraine war
Crude oil prices surges amid Russia-Ukraine war Credit: Ahmed Salahuddin/NurPhoto
Source: Getty Images

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Experts predict higher oil prices

The international benchmark, Brent crude surged 8.4 per cent above $128.20, while Brent jumped to $139.13 at some point overnight, its highest since July 2008.

John Kilduff of Again Capital said the reason oil is rising is because of the prospect of a complete embargo on Russian oil and its products. According to him, high petrol prices are going to keep rising in a harsh way.

Nigeria may increase price of petrol amid tension in Ukraine

This also means Nigeria, which imports most of its refined petroleum products may have to spend more on oil subsidies as the international oil price surges.

There are speculations that the Nigerian authorities may hike the price of petrol amid a scarcity that has lasted more than a month after contaminated petrol was imported into the country.

Meanwhile, the U.S. and its partners are contemplating placing a blanket ban on Russian oil and natural gas imports, according to Secretary of State, Antony Blinken in an interview with CNN on Sunday.

The West mulls further isolating Russia

Blinken said the US is currently talking to its European allies and looking into a coordinated way and the prospect of prohibiting the importation of Russian oil on world markets.

Nancy Pelosi, US Speaker of House of Representatives said the US is examining a strong law to ban the importation of Russian oil.

According to Pelosi, the US would ban the import of Russian oil and energy products into the United States and repeal relations with Russia and Belarus and would consider taking steps to deny Russia access to the World Trade Organisation , headed by Nigeria’s Ngozi Oknjo-Iweala.

Experts predict oil may hit $150 per barrel as Nigeria battles fuel scarcity has reported that Oil prices are nearing $100 per barrel and there is no stopping the increase. In December 2021 and January 2022, international Brent crude jumped by almost $11 per barrel and it's been ascending ever since.

Brent crossing $100 per barrel is almost certain at this point, according to energy analysts but a growing number of pundits have forecasted that the commodity will surpass $125 per barrel or higher anytime soon.

According to CNBC, John Driscoll, the director of JTD Energy Services, there is a method where oil can vault past $120 per barrel.


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