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Oil prices skyrocket as Russian troops march into Ukraine
By Ishika Dangayach - Feb 23, 2022, 01:41 PM ET
Last Updated - Feb 14, 2024, 02:40 PM EST
Brent crude tops $100 for the first time since 2014 after a 5.66% jump
• Brent crude tops $100 for the first time since 2014 after a 5.66% jump
• Natural gas prices rise 4.85% as safe-haven spot gold climbs
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On Wednesday, oil prices rose as the Russian troops marched into the troubled Ukrainian regions amid supply fears.
U.S. crude futures surged 5.4% to $97.04 per barrel on Thursday. Brent crude futures were up 5.66% at $102.32 per barrel, crossing the $100 level for the first time since 2014.
Natural gas prices rose 4.85%. Traditional safe-haven asset spot gold climbed 1.87% trading at $1,942.40.
Early trade showed international benchmark Brent crude tumble $0.31 to $96.53 a barrel, after touching its highest on Tuesday since October 2014 at $99.50. It recovered on reports of troop movement across Ukrainian borders and topped $100 a barrel
The U.S. benchmark, West Texas Intermediate (WTI) crude, fell to $91.48 a barrel, after hitting $96. But it hit a v-shaped recovery to the highest since September 2014 at $97.04.
The Ukraine-Russia situation reached a new low point on Monday evening, Russian President Vladimir Putin sent troops into two separatist areas of eastern Ukraine, declaring Donetsk and Luhansk independent.
President Joe Biden announced sanctions on Russia on Tuesday, naming banks, sovereign debt, and three people as targets as wells as the EU and the United Kingdom also announced the same on Russia.
Ukraine declared a state of emergency on Wednesday and began mobilizing reservists, urging its residents to leave Russia immediately.
Aluminum, nickel, and wheat, all of which are produced in huge amounts in Russia or Ukraine, also increased in price.
A Russian invasion of Ukraine might momentarily send oil prices beyond $100 per barrel. Europe would face a severe energy shock since Russia is an important provider of energy to Europe.
Meanwhile, a deal aimed at restoring Iran's 2015 nuclear accord with world powers is extremely close to being finalized. This deal would return around 1 million barrels of oil to the market every day, although the timeframe is undetermined.
Picture Credits: Business Insider
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