EXCLUSIVE: Oil hits $130 per barrel as EU, US moves to sanction Russian crude oil supply

Technocrat Media, Global

The global price of crude oil per barrel has hit $130 as of Monday, March 7.

According to oilprice.com, the price of oil has gone up as a result of the moves by the United States and the European Union to sanction the supply of Russia to the global oil market.

“The United States has confirmed that it is in talks with European allies to potentially sanction Russian crude oil in response to Moscow’s ongoing aggression in Ukraine, sending oil prices briefly above $130, oilprice.com reported on Monday.

During NBC talk show on Sunday ‘Meet the Press on Sunday’, US Secretary of State Antony Blinken said “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.”

This latest move follows a number of sanctions levelled against the Russian economy but Putin is yet to stop his advance into Ukraine. 

European Commission President Ursula von Der Leyen has yet not fully supported the idea as of yet, though she has expressed that one of their primary goals in the sanctions that have been levied thus far is to cut Putin’s funding streams. 

While speaking on CNN, the European Commission President said, “The goal is to isolate Russia and to make it impossible for Putin to finance his wars,” adding “For us, there is a strong strategy now to say we have to get rid of the dependency of fossil fuels from Russia.” 

The move, if agreed upon, has long been considered the “nuclear option” as a ban on Russian oil could weigh on global supply in an already tight market.

Analysts from Bank of America noted that if the plan on Russian supply is cut off, the global market could occasion a 5-million-barrel shortfall which could push oil prices to $200 per barrel.

[Oilprice.com]