Oil could hit $240 a barrel, warns expert

Oil prices could hit $240 per barrel if other Western nations follow America's lead to ban Russian oil, Rystad Energy has  warned in a report.

 

"Market volatility is at an all-time high, with prices surging on the expectation that supply will further tighten due to restrictive sanctions on Russian energy from the West," said Bjørnar Tonhaugen, Head of Oil Markets, at Rystad.

 

He said while it was not the most likely scenario, traders, analysts and decision-makers alike should prepare for elevated prices based on the current landscape.

 

“This is the largest energy crisis in decades and the impact on the world’s most important commodity is going to be unprecedented.”

 

Oil prices jumped to their highest levels since 2008 on Tuesday after US President Joe Biden announced a ban on Russian crude, gas and coal imports. However, on Thursday, ICE Brent was trading at $114.81 a barrel, after dropping 13 percent in the previous session in its biggest one-day drop in nearly two years. West Texas Intermediate, which tracks US crude, was at $110.20 at 8:45 am UAE time on Thursday, said a Reuters report.

 

Goldman Sachs Commodities Research also lifted its Brent price forecast for 2022 to $135 per barrel from $98, amid the geopolitical tensions.