Oil prices surpassed $100 for the first time in more than seven years on Thursday (today) after the President of Russia, Vladimir Putin, announced his intention to invade Ukraine.
Subsequently, Brent jumped to $100 per barrel, as fears of a full-scale conflict in Eastern Europe intensified, and WTI reached $95.54 a barrel.
“I have decided on a military action,” Putin stated in Moscow just before the Brent surge, threatening punishment against anyone who intervened. He also urged the Ukrainian military to surrender its weapons.
His remarks come after the Kremlin revealed that rebel commanders in eastern Ukraine had requested military assistance from Moscow in their fight against Kyiv.
Brent rose above $100/bbl following Russia’s announcement of a “special military operation” in Ukraine. The oil market will be watching closely to see what measures Western nations will take against Russia. Analysts believe that increasing uncertainty at a time when the oil market is already tight makes it vulnerable, and that prices will remain volatile and high.
At the time of press, Brent crude hit $101.34 a barrel in early Asia trade — the highest since September 2014, and was at $101.20 a barrel at 0423 GMT, up by $5.97. Consequently, the US Western Texas Intermediate (WTI) crude futures rose by $5.64 to $97.74 a barrel after reaching a high of $96.51.
Also, natural gas prices expanded by 4.7 percent whereas spot gold, which is traditionally seen as a safe-haven asset, jumped 1.82 percent and was last seen at $1,942.26.