Oil prices soared on Thursday, with Brent rising above $105 a barrel for the first time since 2014 after Russia attacked Ukraine, exacerbating concerns about disruptions to global energy supplies.
Russia has launched an all-out invasion of Ukraine by land, air and sea, the biggest attack by one state against another in Europe since World War II.
The United States and Europe have promised tougher sanctions on Russia in response.
“If the sanctions affect payment transactions, Russian banks and possibly also insurance covering Russian oil and gas deliveries, supply disruptions cannot be ruled out,” said Carsten Fritsch, an analyst at Commerzbank.
Brent crude was up $8.24, or 8.5%, to $105.08 a barrel at 7:45 am ET. U.S. Crude Oil (WTI) jumped $7.78, or 8.5%, to $99.88.
Brent and WTI hit their highest levels since August and July 2014, respectively.
“Russia is the third largest oil producer and the second largest oil exporter. Due to low inventories and decreasing idle capacity, the oil market cannot afford major supply disruptions,” said UBS analyst Giovanni Staunovo.
“Supply concerns could also spur oil storage activity, which supports prices.”
Russia is also the biggest supplier of natural gas to Europe, supplying around 35% of its supply.
Source: CNN Brasil
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