Russia attack to ukraine keep leading to increment of oil and gas price
Following Russia’s military incursions into Ukraine, crude oil prices on Thursday rose above $100 per barrel for the first time since 2014.
Brent crude reached a high of $102.48 per barrel, the highest price since September 2014, and was up $5.22 or 5.4 percent at $102.06 per barrel at 05:47 GMT.
According to Reuters, U.S. West Texas Intermediate (WTI) oil futures increased by $4.85, or 5.3%, to $96.95 per barrel after reaching as high as $97.40, the highest price since August 2014.
The turn of events followed Vladimir Putin’s order to conduct a “special military operation” in the Donbass region of Ukraine.
Russia is the second-largest oil producer in the world, selling the majority of its crude to refineries in Europe. It is also the top supplier of natural gas to Europe, making up about 35% of the continent’s needs.
On Monday, Mr. Putin declared that he had signed a law authorizing the deployment of Russian forces to “maintain the peace” in the two secessionist areas.
After the decrees, it is anticipated that the United States and its European allies will declare further sanctions against Russia after Mr. Putin formally recognized the two areas in eastern Ukraine, escalating a security crisis on the continent.
Biden would meet with the Group of 7 nations Thursday morning before addressing the American people to “announce the further consequences the United States and our allies and partners will impose on Russia for this needless act of aggression against Ukraine,” according to a statement issued by the White House news late on Wednesday.
After months of a military buildup along their shared border, Mr. Putin attacked Ukraine early on Thursday.
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According to Warren Patterson, the head of ING’s commodity research, “Russia’s announcement of a special military operation into Ukraine has driven Brent to the $100/bbl mark,” was stated by Reuters.
Oil prices are expected to stay volatile and high as a result of the increased uncertainty at a time when the market is already constrained, according to Mr. Patterson.