Oil prices likely to reach $130/barrel on Ukraine invasion: Report

Crude oil prices are expected to reach $130 a barrel due to the Russian invasion of Ukraine, which could squeeze consumers, Bloomberg reported, citing a note of Rystad Energy.

The conflict immediately jeopardizes one million barrels a day of crude that is transited through Ukraine and the Black Sea, Rystad CEO Jarand Rystad said, confirming that the long-term disruptions could be far more significant.

“The reality is that significantly higher prices are on the horizon in Europe and overseas,” he noted.

Although a total suspension of gas exports from Russia is unexpected but gas piped through Ukraine represents 8% of European supply and is at risk, Rystad said.

Crude oil prices rose above $100 a barrel for the first time since 2014 on Thursday as Russian forces invaded Ukraine, pushing the U.S. and its allies to impose sanctions on the country.