Brent jumps to $139 as US mulls Russian oil embargo

Brent crude soared above $139 a barrel, its highest level since 2008, early on Monday after the US House began exploring a bill that would ban the import of Russian oil and energy products.

The global oil benchmark jumped as much as 18 per cent to $139.13 at the opening on Monday before paring some gains and easing back to below $130, even as global companies scrambled to pull out of Ukraine in response to Moscow’s invasion.

Brent prices last week advanced the most in almost two years.

The Biden administration was still exploring whether to prohibit Russian oil imports into the US without the participation of allies in Europe, at least initially, Reuters quoted two people familiar with the matter as saying. The White House had yet to decide on the import ban, with the timing and scope of any move still not clear, according to the sources.

On Sunday, US Secretary of State Antony Blinken said separately that the Biden administration and its allies were discussing an embargo of Russian oil supplies.

Later, US House of Representatives Speaker Nancy Pelosi said the chamber was “exploring” legislation to ban the import of Russian oil and that Congress this week intended to enact $10 billion of aid for Ukraine in response to Russia’s military invasion. “The House is currently exploring strong legislation that will further isolate Russia from the global economy,” she said in a letter.

According to analysts at Bank of America, if most of Russia’s oil exports are suspended, there could be a shortfall of at least five million barrel globally, which could lead to oil prices doubling from $100 to $200 a barrel.

JP Morgan analysts said last week that oil prices could soar to US$185 per barrel this year.