Oil rises towards $130 as Russian crude struggles to find buyers | Reuters

Oil rises towards $130 as Russian crude struggles to find buyers | Reuters

Oil rose towards $130 a barrel on Wednesday, supported by concern of a potential supply shock as the United States banned Russian oil imports and amid signs that some buyers are already steering clear.

The United States on Tuesday imposed a ban on Russian oil imports, Britain said it would phase them out and Shell said it would stop buying Russian crude.

JP Morgan estimated around 70% of Russian seaborne oil was struggling to find buyers. read more

"What is obvious is that the current crisis will not be resolved in the foreseeable (future) and consequently oil prices are expected to remain at elevated levels," said Tamas Varga of oil broker PVM.

Brent crude was up $1.68, or 1.3%, at $129.66 a barrel at 0905 GMT. U.S. West Texas Intermediate (WTI) was up $1.60, or 1.3%, to $125.30.

Oil has surged since Russia, the world's second-largest crude exporter, launched what it called a "special operation" in Ukraine. Brent hit $139 on Monday, its highest since 2008.