Oil prices hit their highest level in over 7 years today, Monday, amid fears that a potential Russian invasion of Ukraine could lead to sanctions from the United States and Europe and disrupt energy exports from the world's largest producer. Brent crude futures reached $95.56 a barrel by 02:35 GMT, up $1.12, after earlier reaching $96.16, the highest level since October 2014. West Texas Intermediate crude rose by $1.28, or 1.4%, to $94.38 a barrel, nearing its highest session level of $94.94, the highest since September 2014.
Statements from the U.S. regarding an imminent attack from Russia on Ukraine have shaken global financial markets. The U.S. stated yesterday that Russia could invade Ukraine at any time and might create a sudden pretext for an attack. Edward Moya, a market analyst at OANDA, noted in a memo, "If a troop movement occurs, Brent crude will easily rise above $100 a barrel." He added, "Oil prices will remain highly volatile and susceptible to escalating developments regarding the situation in Ukraine."
This period of tension comes as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, face challenges in increasing production despite monthly pledges to increase output by 400,000 barrels per day until March.
