Oil shoots up to historic $139

KARACHI: European markets seesawed in afternoon trading, paring back some losses after sharp drops earlier in the day following a 4 per cent fall in Hong Kong. Wall Street was lower in early trading. "The catalyst for the overnight fallout were reports that the US and Western allies are considering a ban on Russian oil imports," said Briefing.com analyst Patrick O'Hare. US Secretary of State Antony Blinken said on Sunday that the White House and allies were in talks about banning oil imports from Russia following its invasion of Ukraine.But German Chancellor Ola Scholz on Monday cautioned against banning Russian oil and gas, saying doing so could put Europe's energy security at risk.

The benchmark Brent North Sea crude oil contract soared to a near 14-year high as it reached $139.13 before cooling to $121.54. The record high stands at $147.50, achieved in 2008 during the global financial crisis.

European gas prices, meanwhile, struck record peaks on energy supply fears. Russia is one of the world's biggest crude producers and is also a leading supplier of natural gas.