The Russian government launched a multi-pronged attack on neighboring Ukraine earlier today, following months of anticipation by western countries of a military buildup and ‘imminent invasion’ which dragged on for over a month.
The dramatic move came just days after President Putin formally recognised the independence of Donetsk and Luhansk separatist regions located in eastern Ukraine.
Not surprisingly, this mechanized assault by Russia on Ukraine’s key military installations and facilities has triggered another energy price shock in the global markets.
Forecasters believe this trend could continue past $120 per barrel depending on the West’s policy reaction to Moscow’s military operation.
CNBC reports…
Oil prices on Thursday jumped following Russia’s invasion of Ukraine, with international benchmark Brent crude surpassing $100 a barrel for the first time since 2014.
The attack is expected to have far-reaching implications for energy markets given Russia’s role as the world’s second-largest producer of natural gas and one of the world’s largest oil-producing nations.
Oil prices have jumped more than $20 a barrel since the start of the year amid escalating Russia-Ukraine tensions. Now, it is feared a wave of international sanctions on Russia’s energy sector could disrupt supplies.
Brent crude futures rose more than 8% at one point to trade above $105 per barrel. By 11:30 a.m. on Wall Street the contract stood at $103.74 for a gain of 7%. U.S. West Texas Intermediate futures, meanwhile, climbed over 5% to trade at $97.02.
WTI had traded above $100 a barrel for the first time since 2014 earlier in the session before paring gains.
Natural gas prices popped 6.5%. Spot gold, traditionally seen as a safe-haven asset, climbed 2.6%, last trading at $1,957.46 per troy ounce…
READ MORE UKRAINE NEWS AT: 21st Century Wire Ukraine Files
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