Crude oil hits fresh seven-year high amid Russia-Ukraine tension

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Crude oil hits fresh seven-year high amid Russia-Ukraine tension

Oil prices
Image source: Copyright © 2022 Kalkine Media®

Highlights

  • Crude oil prices rose on Monday.
  • The comments from the US about a forthcoming attack by Russia on Ukraine have shocked the worldwide financial market.
  • A significant drop in the US crude inventories has also added pressure on the supply side.

Crude oil prices surged to seven-year highs on Monday on worries that a possible invasion of Ukraine by Russia could trigger US and Europe sanctions on Russia, disrupting the energy exports from the world’s top producer.

Must Read: Crude oil rises on falling US crude inventories

April delivery Brent Crude oil futures last traded at US$95.37 per barrel down 0.34%, whereas March delivery WTI crude oil futures traded 1.33% down at US$94.34 per barrel as of 14 February 2022 at 12:41 PM AEDT.

US’ comments on Russia-Ukraine war

The comments from the US about a forthcoming attack by Russia on Ukraine have shocked the worldwide financial market.

There is a huge possibility that Russia could invade Ukraine anytime, creating a surprise pretext for an attack.

Oil watchers are eyeing the talks between the US and Iran to revive the 2015 nuclear deal, expected to bring 1Mbpd into the market to cool boiling oil prices.

A significant drop in the US crude inventories has also added pressure on the supply side.

Rising oil prices

Source: Copyright © 2022 Kalkine Media®

The OPEC also stated that the oil demand may rise even more sharply in 2022 as the world makes a swift recovery after pandemics.

Also Read: WTI Crude surpasses US$90/bbl as frigid weather cascades across the US

Bottom Line

Crude oil prices reached fresh seven-year high levels on Monday on worries that a possible invasion of Ukraine by Russia could trigger US and Europe sanctions on Russia.

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