Oil prices continue to storm new heights amid reports of the security situation around Ukraine. As of Monday morning, Brent crude futures are $95.65 per barrel, while the price has previously reached $96.16 that has not been seen since October 2014.
The cost of the WTI crude barrel also reacted to the news with growth. In the last 24 hours, the price increased by more than 1.4% to $94.94 per barrel, Reuters reports.
Prices are kept at seven-year highs on expectations of a possible Russian invasion of Ukraine that will result in disruption of Russian exports of the resource, either due to sanctions from the EU and the United States, or due to Moscow’s unauthorized decision.
"If troop movement happens, Brent crude won’t have any trouble rallying above the $100 level. Oil prices will remain very volatile and sensitive to incremental updates regarding the Ukraine situation," OANDA analyst Edward Moya pointed out.
"We see upside potential for prices to touch or flirt with $115 per a barrel or higher this summer," RBC Capital analyst Mike Tran noted.
In the United States, high black gold prices prompt energy companies to ramp up extraction. In total, they added the largest number of oil rigs in four years, according to data from Baker Hughes, over the past week.
Context. On Sunday, US President Joe Biden's National Security Adviser Jake Sullivan warned that Moscow could resort to another invasion of Ukraine as early as this week.
Amid escalating tensions around Ukraine, first the United States, and then at least 10 other countries, recommended citizens to leave Ukraine. These countries are: Australia, Great Britain, Canada, Norway, Latvia, Estonia, the Netherlands, Montenegro, South Korea, and Japan.