Ukraine-Russia crisis: Crude oil prices soar past $100 barrel
Mumbai, February 24: Crude oil prices soared past the $100 a barrel mark for the first in more than seven years on Thursday after Russian President Vladimir Putin ordered a military operation in Ukraine.
Brent crude oil surged to a high of $102.48 per barrel on Thursday, the highest level since September 2014. Brent crude oil price surged 5.4 per cent in a day. West Texas Intermediate (WTI) crude oil price jumped 5.9 per cent to $97.58 a barrel, the highest level since August 2014.
Oil prices have increased by more than $20 a barrel since the beginning of the 2022 calendar year due to the escalating tensions between Russia and the United States and its allies over the Ukraine issue.
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Russia is a large exporter of oil and gas. The confrontation in the Russia-Ukraine region has fanned concerns over supplies of petroleum products and other commodities. India is one of the biggest importers of oil and gas. The disruptions in supplies and rise in prices will have a huge negative impact on the Indian economy.
Finance Minister Nirmala Sitharaman said earlier this week that the Ukraine-Russia crisis and high oil prices posed threat to India's financial stability.
With Russia's troops moving into Ukraine, there are concerns over a war in Europe that could disrupt global energy supplies. Russia has launched a full-scale invasion of Ukraine and is targeting cities with weapons strikes, Foreign Minister Dmytro Kuleba said in a tweet.
Brent crude hit a high of $101.34 a barrel in early Asia trade, the loftiest since September 2014, and was at $101.20 a barrel at 0423 GMT, up $4.36, or 4.5%.
US West Texas Intermediate (WTI) crude futures jumped $4.22, or 4.6%, to $96.32 a barrel, after rising to as much as $96.51, also the highest since August 2014.
Russian President Vladimir Putin authorised a military operation in eastern Ukraine on Thursday in what could be the start of war in Europe over Russia’s demands for an end to NATO’s eastward expansion.
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Russia is the world’s second-largest oil producer, which mainly sells crude to European refineries, and is the largest supplier of natural gas to Europe, providing about 35% of its supply.
-PTC News
