Brent crude oil surpasses $113 per barrel, price highest since July 2014

Representative image

Despite fresh efforts by the United States to release nearly 60 million barrels from its strategic reserves with its allies in an attempt to stabilise global energy markets, the Brent crude oil price has hit $113 a barrel. This is the highest level since early July 2014.

U.S. West Texas Intermediate (WTI) crude rose $7.24, or 7%, to $110.67 a barrel, after touching a record not seen since August 2013.

Traders in New York and the Gulf of Mexico are avoiding Russian crude, despite the fact that Western governments have not put direct bans on energy shipments.

In a State of the Union address, US President Joe Biden warned Vladimir Putin that he "has no idea what's coming."

Bharat Petroleum Corp, a state-owned Indian refiner, is seeking additional oil from Middle Eastern producers for April, anticipating that Western sanctions on Russia may disrupt deliveries of Urals crude.

On March 2, the OPEC+ will meet to discuss production plans. Despite the fighting in Ukraine, the oil cartel has stated that it is committed to its pact with Russia and that it would not change production plans.

As a result of Moscow's invasion of Ukraine, Exxon Mobil announced on Tuesday that it would abandon Russia's oil and gas businesses. The corporation will no longer manage big production facilities on Sakhalin Island in Russia's Far East as a result of the decision.

Investor concerns about Russia's invasion of Ukraine have spurred fears that oil and gas supplies may be disrupted.

Also Read | Oil spikes to seven-year high as markets avoid Russian supply 

The United States, the European Union, the United Kingdom, and other countries have retaliated against Russia's invasion of Ukraine with a slew of sanctions, including the exclusion of major Russian banks from Swift, the world's leading payment system.