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U.S. crude oil briefly tops $130 a barrel, a 13-year-high

U.S. crude oil briefly tops $130 a barrel, a 13-year-high

The price of crude oil in the United States increased by more than 7% in late-afternoon trading on Sunday, as the market continued to respond to supply interruptions caused by Russia’s military invasion of Ukraine and the threat of a ban on Russian oil and natural gas.

West Texas Intermediate crude futures, the benchmark for oil prices in the United States, surged 7.34 percent higher to $124.17 a barrel on Friday. The price of gold reached a high of $130.50 on Sunday evening, the highest level since July 2008, before reversing course.

Brent oil, the worldwide benchmark, rose by 8.54 percent to $128.20 a barrel on Tuesday. Brent reached a high of $139.13 at one point overnight, which was also the highest price since July of last year.

Again Capital’s John Kilduff said that “oil is increasing as a result of the risk of a complete ban on Russian oil and goods.” It is expected that already-high gas prices will continue to rise in a precipitous manner. Prices in several places will be approaching $5 within a short period of time.”

The United States and its allies are contemplating imposing an embargo on Russian oil and natural gas imports, according to Secretary of State Antony Blinken, who spoke with CNN’s “State of the Union” program on Sunday.

In a statement, he added, “We are now in discussions with our European colleagues and allies on the possibility of prohibiting the purchase of Russian oil while ensuring that there is a sufficient supply of oil on global markets.” “That’s a really lively conversation right now,” says the moderator.

Meanwhile, in a letter to Democratic colleagues on Sunday evening, House Speaker Nancy Pelosi said that the House of Representatives is “exploring tough legislation” to prohibit the purchase of Russian oil, a move that would “further isolate Russia from the global economy.”

We propose to restrict the import of Russian oil and energy goods into the United States, abolish regular commercial ties with Russia and Belarus, and take the first step toward excluding Russia from joining the World Trade Organization. ” “We would also give the Executive branch the authority to impose taxes on Russian goods,” she stated in her letter.

Russian energy commerce has been permitted to continue despite Western sanctions on the country, but most purchasers have already turned away from Russian supplies because of the sanctions. According to a JPMorgan estimate, Russian oil is having difficulty finding clients for 66 percent of its production.

According to AAA, the average price of a gallon of gasoline in the United States surpassed $4 on Sunday, reflecting the conflict’s rapid movement. The underlying cost of oil accounts for more than half of the price of gasoline that consumers pay to fill their automobile tanks.

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