Rally in energy prices – Jump to $ 100 for oil

LAST UPDATE 13:01

The escalation of geopolitical tensions in Ukraine has provoked sharp reactions in energy prices, as the possibility of imposing sanctions on Russia intensifies concerns about the levels of supply of oil and gas.

In this climate, Brent crude for April delivery was up 3% or $ 2.95 at $ 98.31 a barrel, hitting a one-day high of $ 100 ($ 99). , 5).

The rise in the American WTI is even more intense, with its own contract in March being at + 4.3% with gains of $ 3.9 and its price reaching $ 94.89 per barrel.

As PVM trader Tamas Varga told Reuters, “the possibility of a rally over $ 100 has now received a huge boost”, noting that “those who bet on it expected an escalation of tension (in Ukraine) .

“We are seeing the oil market go through a period of rapid growth and nervousness, driven by geopolitical fears and emotions,” said Julius Baer analyst Norbert Rucker.

He added that “given the prevailing mood, oil prices are extremely likely to rise to three digits.”

At the same time, gas futures follow a similar move, with the European benchmark, the Dutch TTF contract rising by 6% and its price reaching 76.85 euros per megawatt hour.

Yesterday, Russian President Putin said he recognized the independence of pro-Russian separatist groups in Lugansk and Donetsk in Ukraine and then ordered his army to move to those areas as a “peacekeeping force.”

The White House immediately issued a boycott in these areas while more measures are expected today.

European Union officials, meanwhile, have described Putin’s latest actions and statements as a “gross violation of international law”, also announcing sanctions on Russia.