Independent Online

Friday, August 19, 2022

Like us on FacebookFollow us on TwitterView weather by locationView market indicators

Oil price tops $100 a barrel for the first time in over 7 years after Russian assault on Ukraine

Benchmark oil contract Brent North Sea on Thursday topped $100 per barrel for the first time in more than seven years, this time on supply fears after major producer Russia attacked Ukraine. Photo: REUTERS/Nick Oxford

Benchmark oil contract Brent North Sea on Thursday topped $100 per barrel for the first time in more than seven years, this time on supply fears after major producer Russia attacked Ukraine. Photo: REUTERS/Nick Oxford

Published Feb 24, 2022

Share

Benchmark oil contract Brent North Sea on Thursday topped $100 per barrel for the first time in more than seven years, this time on supply fears after major producer Russia attacked Ukraine.

Brent surged as high as $100.29 – a level last seen in 2014.

Story continues below Advertisement

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.

Oil prices rocketed last year to around $70 per barrel as economies reopened from lockdowns, sparking a surge in demand for crude.

Brent's record high stands at $147.50 per barrel.

Here is a timeline of when oil had previously topped $100.

2012: Iran crude embargo

Story continues below Advertisement

Oil started the year above $100 after Western powers imposed a raft of economic sanctions on Iran, including crude exports, aimed at halting its controversial nuclear programme.

2011: Arab Spring

Brent soared to $127 in March 2011 following unrest in the oil-producing Middle East and North Africa region.

Story continues below Advertisement

The market rebounded after the so-called Arab Spring uprisings toppled the long-standing leaders of Tunisia, Egypt and Yemen, while unrest also rocked other parts of the region, especially crude producer Libya.

2008: Record-high $147

On July 11, 2008, Brent hit a record high of $147.50 per barrel, having breached $100 at the start of the year for the first time.

Story continues below Advertisement

Crude surged thanks to falling stockpiles in the United States, strong Chinese demand and unrest in key OPEC members Iran and Nigeria.

A weaker dollar also lent strong support, making crude, priced in the currency, cheaper for buyers holding other currencies.

But by December 2008, Brent had tanked to sit at around $36 owing to severe economic recession worldwide in the wake of the global financial crisis.

AFP

Share