London: World oil prices on Thursday breached $100 for the first time in more than seven years, this time on supply fears after major producer Russia attacked Ukraine.
European benchmark Brent North Sea crude surged more than eight percent to $105.79 per barrel — the highest level since 2014. US contract West Texas Intermediate reached $100.54 per barrel, also a peak last seen more than seven years ago. That capped a meteoric rise over almost two years since crude fell into negative territory for the first time. In early 2020, oil briefly turned negative following the onset of the coronavirus pandemic that shut offices and factories — and grounded planes worldwide.
The market tumbled also on scarce storage facilities and a Saudi-Russia price war. WTI slumped to minus $40.32, meaning that producers paid buyers to take the oil off their hands. At the same time, Brent tanked to a record low $15.98. Oil prices have since recovered, rocketing last year to around $70 per barrel as economies reopened from lockdowns, sparking a surge in demand for crude. Russia is a key member of the expanded OPEC+ producers’ grouping that also includes number one player Saudi Arabia.
