Brent crude tests $139/bbl, highest since 2008

New Delhi: Oil prices on Monday soared to the highest level since 2008 after the US said it was discussing a potential embargo on Russian supplies with its allies, BBC reported.

Brent crude, theglobal oil benchmark, spiked to above $139 a barrel, before easing back to below $130, BBC reported. Brent crude recorded its all-time high in July 2008, when the price per barrel of US crude climbed to $145.29 per barrel. Brent crude -- the global oil benchmark -- spiked to above $139 a barrel, before easing back to below $130, BBC reported. Brent crude price recovered over $10 and was trading at $125 a barrel.

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

On the other hand, rising crude oil prices is hinting an alarm signal for Indian consumers. Petrol and diesel prices are likely to be hiked this week as oil companies prepare to pare losses accumulated from keeping rates steady for over four months in the run-up to Assembly elections in five states, including UP, despite international oil prices jumping to a 13-year high of $140 per barrel.

Energy markets have been rocked in the recent days over supply fears triggered by the Russian invasion of Ukraine. Consumers are already feeling the impact of higher energy costs as fuel prices and household bills jump.

Stock markets in Asia fell on Monday, with Japan's Nikkei and the Hang Seng in Hong Kong down by more than 3 per cent, the report said.

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 $10bn 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," Pelosi said in a letter.

A Russian oil embargo would be a major escalation in the response to the invasion of Ukraine and would potentially have a major impact on the global economy, the report said.

Crude oil prices rose by Rs 1,005 to Rs 9,585 per barrel on Monday as participants widened their positions on a firm spot demand.

On the Multi Commodity Exchange (MCX), crude oil for March delivery traded higher by Rs 1,005 or 11.71 per cent to Rs 9,585 per barrel in 11,324 lots. Analysts said raising of bets by participants kept crude oil prices higher in the futures trade. Globally, West Texas Intermediate crude oil was up by 7.49 per cent to $124.34 per barrel, while Brent crude traded 7.89 per cent higher at $127.43 per barrel in New York.

Petrol, diesel price hike likely this week

Petrol and diesel prices are likely to be hiked this week as oil companies prepare to pare losses accumulated from keeping rates steady for over four months in the run-up to Assembly elections in five states, including UP, despite international oil prices jumping to a 13-year high of $140 per barrel.

West Texas Intermediate crude futures, the US oil benchmark, rose to $130.50 per barrel on Sunday evening, its highest since July 2008, before retreating. The international benchmark, Brent crude, hit a high of $139.13 at one point overnight, also its highest since July 2008. To compound things, the Indian rupee tumbled to a record low of 76.9812 per dollar on Monday. India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices. The twin blows of oil prices, already up more than 60 per cent this year, and a weakening rupee may hurt the nation's finances, upend a nascent economic recovery and fire up inflation. Petrol and diesel prices need to be increased by Rs 15 a litre for fuel retailers to break even, industry sources said. Since 2017, fuel prices are to be adjusted daily in line with the benchmark international rate in the preceding 15 days. But rates have been on the freeze since November 4, 2021. The basket of crude oil that India buys rose above USD 111 per barrel on March 1, according to information from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry.