The Oman crude was traded on Dubai Mercantile Exchange (May delivery) for $127.71 on Wednesday.
The crude witnessed an increase of $4. 78 from Tuesday’s $122.93.
Oil prices extended gains after the United States and Britain moved to ban imports of Russian crude.
But while the panic selling that characterized markets for two weeks eased, analysts warned of further volatility as Russia showed no sign of letting up on its invasion of Ukraine.
The crisis has fuelled fears that the fragile global recovery from Covid-19 will be replaced by a period of stagflation, in which inflation surges and economies flatline or contract.
A crucial driver of equity selling has been rocketing commodities prices.
Crude is the main worry as the removal of Russia’s output will compound an already tight market. Russia is the world’s third-biggest oil producer.
Wheat and metals including nickel have already hit record highs.
Warnings that US President Joe Biden would put an embargo on imports from Russia sent Brent prices soaring to as high as $139 Monday — about $8 short of a 2008 record — before they retreated.
However, confirmation of the ban Tuesday, and news that Britain would join by the end of the year, sent the black gold roaring up again.
EU nations, which receive roughly 40 percent of their gas imports and one-quarter of their oil from Russia, instead opted to set a goal of cutting their Russian gas imports by two-thirds.
In Wednesday’s trade, Brent was sitting at around $130, while WTI was hovering around $125.
Biden’s announcement on oil also shot a hole in a rally on Wall Street, with all three main indexes ending in the red.
Gold edges towards record –
Safe-haven gold is closing in on a record high as investors rush for a hedge against soaring inflation. The yellow metal rose as high as $2,070 before easing slightly.
Adding to the upward pressure was news that a cross-party group of US senators had put forward a bill to impose secondary sanctions on anyone buying or selling Russian gold, a move aimed at preventing Moscow from liquidating its holdings to support the collapsing ruble.
Gold was already rising in recent weeks as inflation soared to a 40-year high in the United States, forcing the Federal Reserve to start lifting interest rates, which had been acting as a dampener on world markets.
And commentators still expect rates to rise despite the economic hit from the Ukraine war.
