Oil prices spike as supply disruption fears grip US
New York (CNNBusiness)US oil prices briefly spiked on Thursday to their highest level in nearly 14 years, as concerns about disruptions to Russia’s supplies continue.
US crude jumped as much as 5.4% to $116.57 a barrel early Thursday — the highest trade since September 22, 2008. A week earlier Lehman Brothers collapsed.
However, the spike was fleeting. By late morning, crude had turned slightly negative. In recent trading, oil was little changed at $110.75 a barrel.
Despite the pullback from the intraday highs, oil remains up by 20% since just before Russia invaded Ukraine last week.
Brent, the world benchmark, flirted with $120 a barrel Thursday morning. Brent hit an intraday high of $119.84 a barrel, the highest since May 2012. The oil contract backed off and in recent trading was up just slightly.
Russia was the No. 2 oil producer in the world last year, and the invasion of Ukraine has triggered fears about supply disruptions.
Although Western officials have not directly imposed sanctions on Russia’s oil-and-gas supplies, industry analysts say there has been a de facto ban on Russia’s oil due to concerns about running afoul of sanctions.
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