Oil prices sharply increased on Monday on concerns of a possible embargo on Russian oil, which if imposed would limit global supply in an already tight and volatile market.
International benchmark Brent crude was trading at $129.81 per barrel at 0658 GMT for a 9.9% gain after closing the previous session at $118.11 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $126 per barrel at the same time for an 8.9% increase after the previous session closed at $115.68 a barrel.
Sanctions on Russia imposed by the EU, UK, and US and concerns of possible counter-sanctions from Russia are key drivers for the rise in oil prices.
Russia’s war on Ukraine has been met with outrage from the international community, with the imposition of sanctions and with the withdrawal of major international companies from Russia.
To further pressure Russia, the US, and European allies are discussing the possibility of putting an embargo on Russian oil exports, US Secretary of State Antony Blinken said on Sunday, which triggered the oil price spike.
“We are now in very active discussions with our European partners about banning the import of Russian oil to our countries, while of course, at the same time, maintaining a steady global supply of oil,” Blinken said in an interview on NBC.
Meanwhile, Russia announced early Monday that it would declare a “temporary” cease-fire in the Ukrainian cities of Kyiv, Mariupol, Kharkiv, and Sumy from 10.00 a.m. local time (0700 GMT) to allow evacuation of civilians.
