March 8, 2022
Opportunities abound for oil traders as crude had its biggest daily swing ever, with Brent surging to nearly $140 after the U.S. said it was considering a ban on Russian petroleum imports.
The international benchmark subsequently pulled back to settle at the highest price since 2012. In New York, West Texas Intermediate closed at the highest in nearly 14 years. Prices from oil to nickelto wheat are surging to new highs, exacerbating fears of a major inflationary shock to the global economy.
Oil jumped at the markets open on news the Biden administration is mullingwhether to prohibit Russian oil imports, Prices pared gains after Germany saidit has no plans to halt Russian energy imports, bolstering the volatility in the market.
The U.S. is staring down the barrel of a supply crisis. An outright export ban on Russian crude from the U.S. and its allies could remove as much as 4 million barrels a day from the market.
Surging oil prices and supply fears are also raising the price of fuels. Diesel futures in Europe and the U.S. touched the highest in decades. The so-called “prompt spread” for diesel on Europes Intercontinental Exchange surged to a record. U.S. gasoline futures also surged to the most on recordin data going back to 2005. American pump prices are just 5 cents a gallon away from an all-time high set 14 years ago.
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