Oil prices on Monday hit their highest in more than seven years on fears that a possible invasion of Ukraine by Russia could trigger U.S. and European sanctions that would disrupt exports from the world`s top producer in an already tight market.
Brent crude futures was at $95.56 a barrel by 0235 GMT, up $1.12, or 1.2%, after earlier hitting a peak of $96.16, the highest since October 2014. U.S. West Texas Intermediate (WTI) crude rose $1.28, or 1.4%, to $94.38 a barrel, hovering near a session-high of $94.94, the loftiest since September 2014.
Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets. Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday.
“If … troop movement happens, Brent crude won’t have any trouble rallying above the US$100 level,” OANDA analyst Edward Moya said in a note. “Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation.”
The tensions come as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, struggle to ramp up output despite monthly pledges to increase production by 400,000 barrels per day (bpd) until March
