Russia attacks Ukraine: Crude oil prices surge to record-high level crossing $110 a barrel

In view of Russia's invasion of Ukraine, oil prices have soared to their highest levels since 2008 as buyers continue to shun Russian crude. The ongoing Russia-Ukraine war which has affected multiple sectors including commodity markets across various businesses has left other countries looking for options other than Russia, for raw materials. This came as a part of the financial sanctions imposed by western countries on Russia. 

As a result of this, while the Brent crude oil price soared at the highest of $118 per barrel on Thursday, it is said to be the highest level in the past nine years. Along with that, the West Texas Intermediate or the WTI crude oil prices also surged to $114.70 per barrel and are said to be the highest in the past 11 years. 

The Brent crude oil, also known as the London Brent, which makes up more than half of the world's globally traded supply of crude oil surged to a level high of $118.22 per barrel in London, becoming the highest since February 2013. On the other hand, WTI crude oil prices in the United States spiked to $114.70 per barrel marking it the highest in the last 11 years. 

This came as the Russia-Ukraine conflict continues to escalate following tight sanctions on Moscow by the western countries, especially led by the United States, creating a situation of supply and trade disruptions.

Notably, crude oil prices have been skyrocketing since the past week after Russian President Vladimir Putin ordered a 'special military operation' in Ukraine. As Russia accounts for around 10% of the global oil supplies, the ongoing conflict has raised several problems for oil suppliers from other countries in regions like Kazakhstan. 

Impact of Russia-Ukraine war on Indian oil prices

Speaking on the rising oil prices in India, crude futures for March 21, 2022 delivery rose by 5.14% to Rs 8,667 per barrel at the Multi Commodity Exchange (MCX) in Mumbai. Along with this, the ongoing war can also push India's domestic rates of petrol and diesel to record high. 

Earlier on Monday, the price of crude oil in India stood at USD 102 a barrel. Compared to an average of USD 81.5 per barrel price of the Indian basket of crude oil last year, this can be said to be a huge spike. 

As per a PTI report, fuel prices are likely to rise again after the elections end and will further bridge the Rs 9 a litre gap created by international oil prices soaring past USD 100 a barrel. This comes in the backdrop of domestic fuel prices in India directly being linked to international oil prices as India imports 85% of its oil needs.

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