Models of oil barrels and a pump jack are shown in front of a rising stock chart and “$100” in this illustration taken February 24, 2022. REUTERS/Dado Ruvic/Illustration

NEW YORK, March 6 (Reuters) – Oil prices have risen to their highest level since 2008 due to delays in the potential return of Iranian crude to world markets and as the United States and its European allies plan to ban imports of Russian oil.

Talks to revive the 2015 nuclear deal between Iran and world powers were mired in uncertainty on Sunday after Russia’s demands for a US guarantee that the sanctions it faces over the Ukraine conflict will not harm not to its trade with Tehran. China has also raised new demands, sources said. Read more

In response to Russia’s demands, US Secretary of State Antony Blinken said on Sunday that sanctions imposed on Russia for its invasion of Ukraine had nothing to do with a possible nuclear deal with Iran. Read more

The United States and its European allies, meanwhile, are considering banning Russian oil imports, Blinken said Sunday, and the White House has been coordinating with key congressional committees to move forward with their own ban. Read more

Brent crude rose $11.67, or 9.9%, to $129.78 a barrel as of 6:50 p.m. EST (2350 GMT), while U.S. West Texas Intermediate (WTI) crude rose 10 $.83, or 9.4%, to $126.51, putting both contracts on track for their highs. daily percentage gains since May 2020.

In the opening minutes of trading on Sunday, both benchmarks hit their highest since July 2008 with Brent at $139.13 a barrel and WTI at $130.50.

Both contracts peaked in July 2008 with Brent at $147.50 a barrel and WTI at $147.27.

U.S. gasoline and distillate futures followed the surge in crude prices in the first minutes after the market opened on Sunday, hitting record highs.

“Iran was the only real bearish factor weighing on the market, but if now the Iran deal is delayed, we could hit bottom much faster, especially if Russian barrels stay out of the market for a long time,” he said. Amrita Sen, co-founder of Energy Aspects, a think tank.

JP Morgan analysts said this week that oil could climb to $185 a barrel this year.

“The idea was not to sanction oil and gas because of their essential nature, but oil is sanctioned by private actors not wanting to take it back or ports not wanting to receive it and the longer it goes on, the more supply chains are going full circle,” said Daniel Yergin, author and vice president of S&P Global ahead of the CERAWeek conference in Houston.

Russia exports around 7 million bpd of oil and refined products, or 7% of world supply. Some volumes of Kazakhstan’s oil exports from Russian ports have also faced complications.

Bank of America analysts have said that if most of Russia’s oil exports were halted, there could be a shortfall of 5 million barrels or more, meaning oil prices could double from 100 at $200 a barrel.

Iran will take several months to restore oil flows even if it reaches a nuclear deal, analysts have said. Read more

Eurasia Group said further Russian demands could disrupt nuclear talks, although it still kept the odds of a 70% deal.

“Russia may be intent on using Iran as a means to circumvent Western sanctions. A written guarantee allowing Russia to do so is probably far beyond what Washington can offer in the midst of a war. on a large scale in Ukraine,” said Henry from Eurasia. Rome.

Also supporting crude prices, the closure of Libya’s El Feel and Sharara oil fields led to the loss of 330,000 barrels per day (bpd), the National Oil Corporation (NOC) announced on Sunday. OPEC member Libya produced about 1.2 million bpd of crude in 2021, according to US energy data. Read more

In the United States, meanwhile, the average price of a gallon of gasoline hit $4,009 on Sunday, according to AAA, an auto association, the highest since late July 2008. Consumers are paying 40 cents more than a week ago, and 57 cents more than a month ago. Read more

AAA, which has data dating back to 2000, said U.S. pump prices for gasoline hit a record high of $4,114 on July 17, 2008.

Senior US officials traveled to Venezuela on Saturday for talks with President Nicolas Maduro’s government, seeking to determine whether Caracas is ready to distance itself from Russia, its close ally. Read more

Additional reporting by Dmitry Zhdannikov in London; Editing by Raissa Kasolowsky, Lisa Shumaker, Daniel Wallis, Sam Holmes and Diane Craft

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