Fears of Russian invasion of Ukraine push up oil prices
The oil prices go up by more than 1 percent Monday morning, thereby hitting the highest level in seven years. The price hike is caused by a fear of a potential Russian invasion of Ukraine.
A barrel of European benchmark crude Brent costs USD 95.49 Monday morning against USD 93.27 Friday afternoon. At the same time, US benchmark crude West Texas Intermediate trades at USD 94.41 against USD 91.59 Friday afternoon.
”If ... troop movement happens, Brent crude won’t have any trouble rallying above the USD 100 level,” says OANDA analyst Edward Moya to Reuters.
The Organization of Petroleum Exporting Countries and its allies in OPEC+ are scrambling to step up output despite pledges of a 400,000-barrel increase per day until March.
According to JP Morgan analysts, seven OPEC members failed to meet the quota increase targets last month, writes Reuters. JP Morgan now estimates that the oil prices could exceed USD 125 per barrel.
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