Oil prices continue to rise. The price of North Sea oil is now about double what the government has planned for as an average price in 2022.
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When oil trading opened Monday night, the price of North Sea oil rose nearly 20 percent to $ 139 a barrel. It reports Bloomberg.
Half an hour after opening, the price increase was nine percent, and a total of 129 dollars a barrel.
According to Reuters, these prices are the highest the market has seen since 2008, and according to Reuters have a background in both breaches of supply from Russia – and delays in a possible nuclear agreement with Iran.
The oil price has recently been record high measured in Norwegian kroner. But the price already on Wednesday passed 1000 kroner a barrel (and night to Monday is 1150 kroner a barrel), the government assumed an average price of oil of 559 kroner a barrel this year, in the National Budget from this autumn.
Now the price is more than double what the government has calculated as the average price.
Possible import ban on Russian oil
According to Bloomberg, the rise in prices is linked to discussions between the United States and its allies about a possible trade ban on Russian oil, in response to Russia’s invasion of Ukraine.
US Secretary of State Anthony Blinken said on Sunday that the United States is in talks with European countries to introduce a ban on Russian oil imports. According to Blinken, if European countries do not agree to such a sanction, it may still be relevant for the United States.
“We are now talking to our European partners and allies about the possibilities of banning the import of Russian oil,” US Secretary of State Antony Blinken told CNN Sunday.
–– Aggressive tone
Senior analyst Helge Andre Martinsen in DNB Markets explained Wednesday to E24 that many players in the oil market are now worried about trading in Russian oil.
Russia exports around five million barrels per day. The total global consumption is around 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 now see a more aggressive tone towards Russia from the USA and other important western countries. But the most important thing that is happening now is self-imposed sanctions, because shippers, traders, banks and refineries do not want to be associated with Russia, Martinsen told E24.
The price of American West Texas Intermediate oil (WTI) also rose by around 10 percent, peaking at almost 128 dollars per barrel. CNBC reports that it is the highest price of WTI oil in 13 years.
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