Oil price hits $130 amid potential ban on Russian oil

Oil price, on Tuesday, surged to $130 a barrel amid oversupply fears triggered by a potential US and European ban on Russian oil imports.

Brent crude futures, the global benchmark, increased over 5 percent to $130.1 a barrel at 15.07 GMT+1.

West Texas Intermediate (WTI) crude futures also rose correspondingly over 5 percent to trade $122.52 a barrel.

Last week, the Organisation of Petroleum Exporting Countries and its allies, known as OPEC+ agreed to increase production by 400,000 barrels per day, citing geopolitical tensions as the reason for rising oil prices.

President Joe Biden had on Monday, held a video conference call with the leaders of France, Germany, and the United Kingdom to seek their support for a ban on Russian oil imports.

“We are now in very active discussions with our European partners about banning the import of Russian oil to our countries, while of course, at the same time, maintaining a steady global supply of oil,” Antony Blinken, US secretary of state, said in an interview with NBC.

In Nigeria, petrol subsidy payments erode gains despite soaring oil prices.

TheCable had reported how petrol subsidy payments gulped N1.43 trillion in 2021.