The price of oil has risen to its highest level since 2014, owing to the development of the Russia-Ukraine conflict.
On Tuesday, oil touched its highest level since 2014 as tensions between Russia and Ukraine rose after Moscow sent soldiers into two separatist areas in eastern Ukraine, adding to supply worries that have pushed prices over $100 a barrel.
After President Vladimir Putin officially recognised the two territories in eastern Ukraine, the United States and its European allies are preparing to impose fresh sanctions against Russia, deepening a security crisis on the continent.
Oil dealer PVM’s Tamas Varga stated, “The possibility for a rise beyond $100 a barrel has gained an immense boost.” “Those who wagered on such a move were foreseeing the conflict’s intensification.”
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At 0900 GMT, Brent crude was up $3.48, or 3.7 percent, at $98.87, after reaching $99.38, the highest since September 2014.
In comparison to Friday’s settlement, U.S. West Texas Intermediate (WTI) crude rose $4.41, or 4.8 percent, to $95.48, having previously touched $96, the highest level since 2014. Due to a federal holiday in the United States, the stock market was closed on Monday.
As demand rebounds from the coronavirus epidemic, the Ukraine situation has bolstered an oil market that has risen owing to constrained supply.
OPEC+, or the Organization of Petroleum Exporting Countries and Allies, has rejected requests to increase output more quickly.
A top British politician warned on Tuesday that Russia’s invasion of Ukraine has created a scenario similar to the 1962 Cuban missile crisis, when the US and the Soviet Union clashed and the world was on the verge of nuclear Armageddon.
On Tuesday, Nigeria’s state minister for petroleum agreed with OPEC+ that further supply was not required, noting the possibility of increased output from Iran if its nuclear agreement with international powers is resurrected.
Iran is in talks with foreign countries to extend its nuclear accord, which may raise Iran’s oil exports by over a million barrels per day.
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source: reuters
