The price of a tank of petrol hit all-time highs as the surge in oil prices on the back of escalating tension in Ukraine fed through to the forecourt.
Data from the RAC revealed unleaded petrol hit 149.03p per litre yesterday, the highest on record, as wholesale petrol costs soared.
Brent Crude Oil (LSE:BRENT) climbed to US$98.87 this morning, the highest since September 2014 after Russian President Vladimir Putin ordered troops into the east of Ukraine in what was described as a “peacekeeping” mission.
Western countries including the United States, the UK and the European Union are expected to announce new sanctions on Russia in response.
Brokers said rising hostilities over disputed Ukrainian territory will likely lead to squeezed supply as Russia chokes off the the West.
“With oil demand expected to reach record highs in the coming months, 2H22 spare capacity will drop, and likely be only in the hands of the Saudis and the UAE,” said Wayne Gordon of UBS.
“With dwindling spare capacity, the narrative in the oil market will shift from ‘OPEC+ in full control of the market’ to ‘US shale oil needed to balance the market,’ requiring higher prices.”
The price of oil has spiked almost 60% since languishing at 4-month-lows in August as the stand-off between Russia and Ukraine added to supply constraint worries.