Oil prices hit multi-year highs as supply tightens | Reuters

Oil prices hit multi-year highs as supply tightens | Reuters

Benchmark Brent crude oil prices climbed close to $120 a barrel on Thursday, with Russian oil exports disrupted as traders try to avoid becoming entangled in sanctions.

Support also came from U.S. crude stockpiles at multi-year lows, helping to lift Brent crude futures as high as $119.84 a barrel for the highest level since 2012.

By 1024 GMT the contract was up $2.18, or 1.9%, at $115.11 a barrel.

Brent has jumped by about 37% in the past 30 days and the contract's six-month spread hit a record high on Thursday at more than $21 a barrel, indicating very tight supplies.

U.S. West Texas Intermediate crude hit a high of $116.57, its loftiest since 2008, before retreating a little to $113.12, up $2.52 or 2.3%.

The gains followed a fresh round of U.S. sanctions that target Russia's oil refining sector, raising concerns that Russian oil and gas exports could be targeted next. read more