Oil price rallies at $100 per barrel on the back of Russia attack on Ukraine
Russia’s military attack on Ukraine had it’s toll on crude oil prices as it surged above $100 per barrel on Thursday.
This was the first time oil prices were going above $100 since 2014.
Russia Defence Ministry has announced that its military has started full scale war in Ukraine after weeks of denials by President Vladimir Putin that his country has no intention of invading Ukraine.
Explosions have been heard in the Ukrainian capital of Kiev and other major cities after Vladimir Putin announced that a military operation had begun.
Brent crude oil sold for $102.48 per barrel on Thursday, its highest since September, while the U.S. West Texas Intermediate (WTI) crude futures jumped $4.85, or 5.3 per cent, to $96.95 a barrel, after rising to as much as $97.40, the highest since August 2014, Reuters reported.
Russia is the world’s second-largest oil producer, mostly selling its crude to European refineries, and the largest supplier of natural gas to Europe, providing about 35 per cent of the latter’s supply.
Reuters quoted the head of ING’s commodity research, Warren Patterson as saying “Russia’s announcement of a special military operation into Ukraine has pushed Brent to the $100/bbl mark.
“This growing uncertainty during a time when the oil market is already tight does leave it vulnerable, and so prices are likely to remain volatile and elevated,” Mr Patterson said.
