Oil Breaches $100 For First Time Since 2014 As Russia Attacks Ukraine

Oil breached $100 a barrel for the first time after 2014 on Thursday as Russia moved troops into Ukraine. As per the reports that a war in Europe 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 to $4.36, or 4.5%. U.S. 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 the war in Europe over Russia’s demands for an end to NATO’s eastward expansion. 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. Western nations and Japan on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbour.

So far, there are no sanctions on the energy trade yet. Japan and Australia said on Thursday they were prepared to tap their oil reserves, together with other International Energy Agency (IEA) member countries, if global supplies were hit by hostilities in Ukraine. The U.S. and Iran have been engaged in indirect nuclear talks in Vienna, in which a deal could lead to the removal of sanctions on Iranian oil sales and increase global supply.

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