Oil prices continue to rise. The price of North Sea oil is now about double what the government had planned for an average price in 2022.
At the opening of oil trading on Monday night, the price of North Sea oil rose about 20 percent to $139 a barrel. It’s Bloomberg reports.
Half an hour after opening, prices were up nine percent, totaling $129 a barrel.
These prices are the highest the market has seen since 2008, and according to Reuters, they have a background in both supply breaches from Russia – and delays in a potential nuclear deal with Iran.
The price of oil recently hit a record high, measured in Norwegian krone. But already on Wednesday the price exceeded 1,000 kroner per barrel (and by night until Monday 1150 kroner per barrel), the government assumed an average oil price of 559 kroner per barrel this year, in the national budget as of the fall.
Now the price is more than twice what the government calculated as the average price.
Possible import ban on Russian oil
According to Bloomberg, the price hike is linked to discussions between the United States and its allies about a possible trade embargo on Russian oil, in response to the Russian invasion of Ukraine.
US Secretary of State Anthony Blinken said on Sunday that the United States is in talks with European countries to impose a ban on Russian oil imports. According to Blinken, if European countries do not agree to such a punishment, it may still be relevant to the United States.
“We are now talking with our European partners and allies about the prospects of banning the import of Russian oil,” said US Secretary of State Anthony Blinken. CNN Sunday.
– aggressive tone
Chief Analyst Helge Andre Martinsen at DNB Markets Wednesday explained to E24 Many players in the oil market are now concerned about the trading of Russian oil.
Russia exports about five million barrels per day. Total global consumption is about 100 million barrels per day. At the turn of the year, Russia was the world’s fourth largest exporter of crude oil and petroleum products after Canada, Mexico and Saudi Arabia.
We are now seeing a more aggressive tone toward Russia than the United States and other important Western countries. But the most important thing happening now is the self-imposed sanctions, because shippers, merchants, banks and refineries don’t want to be associated with Russia, Martinsen told E24.
The price of US West Texas Intermediate (WTI) crude also rose by about 10 percent, peaking at nearly $128 a barrel. CNBC reports that It is the highest price of West Texas Intermediate oil in 13 years.
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