Brent touches nine-year high of $118, supply issues roil oil markets

Brent crude oil price soared past $118 a barrel on Thursday, the highest level in nine years, as escalated Russia-Ukraine conflict and tightened sanctions on Moscow by western countries, led by the United States, created supply and trade disruptions.

Brent crude futures surged to $118.22 per barrel in London, the highest level since February 2013. Brent crude, also known as London Brent, makes up more than half of the world's globally traded supply of crude oil.

In the United States, West Texas Intermediate (WTI) crude oil price surged to $114.70 a barrel, the highest in 11 years.

In India, at the Multi Commodity Exchange (MCX), Mumbai, crude futures for March 21, 2022 delivery soared 5.14 per cent to Rs 8667 per barrel.

Crude oil prices have skyrocketed in the last one week after Russian President Vladimir Putin ordered a military operation in Ukraine.

Russia accounts for around 10 per cent of the global oil supplies. The Russia-Ukraine conflict has also caused problems for oil supplies from other countries in the region like Kazakhstan.