Crude Oil
Brent Crude Prices Hit $96/Barrel Amid Ukraine-Russia Tensions

Published
12 months agoon

Brent crude oil prices hit $96 per barrel Monday, its highest since October 2014. In addition, West Texas Intermediate (WTI) crude nearly breached the $95 mark. Fears of a possible invasion by Russia of Ukraine are stoking fears of disruption in oil supplies worldwide.
RELATED: Crude Oil Forecast and Technical Analysis
Prices of WTI and Brent Crude Reach Eight-Year Highs
Prices of WTI and Brent crude hit their highest rates during the last eight years. Traders feared that a Russian invasion of Ukraine would lead to the heavy US and European sanctions. In turn, these sanctions can further disrupt the supply of crude oil in an already strained market.
Want to see the full article?
Click here to read the full article on thecapitalist.com
On Monday, Brent crude futures hit a peak of $96.16 before settling lower at $95.96 a barrel. This is its highest rate since October 2014. Meanwhile, West Texas Intermediate crude also rose 1.4% or $1.28 to hit $94.38 a barrel. Earlier WTI hit a session high of $94.94, its highest since September 2014.
US Fears of Russia’s Imminent Attack on Ukraine Stoking Fears
Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets. The United States said on Sunday that Russia can invade Ukraine at any time now. In justifying its actions, Russia might create a surprise pretext for an attack. As a result, the US reaffirmed its pledge to defend “every inch” of NATO territory.
Meanwhile, Russian troops massed on the Ukraine border now number more than 100,000. Ukraine is not a member of the North Atlantic Treaty Organization. However, the US reiterated that it supports Ukraine’s right to join the group. On the other hand, Russia dismissed the US’s warning about the country’s invasion plans. The country repeatedly accused the West of “hysteria” in stoking the flames.
Oil Prices To Surge Depending On Ukraine SItuation
OANDA analyst Edward Moya issued a note saying that consumers should brace themselves. Moya said that if Russian military activity escalates, Brent crude won’t have problems hitting above $100 per barrel. “Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation,” he added.
Meanwhile, pressure mounts for the Organization of Petroleum Exporting Countries (OPEC) to increase its Brent crude output. Including allis that help makeup OPEC+, these countries are having trouble fulfilling their pledge to ramp up production. Last year, the oil group committed to increasing its output by 400,000 barrels per day until March.
OPEC+ Output Gaps
The International Energy Agency said that the coalition’s gap is now 900,000 BPD in January. For OPEC member countries alone, the gap widened at 1.2 million barrels. In addition, JPMorgan analysts issued a February 11 note saying that OPEC isn’t moving the needle much. “We note signs of strain across the group: seven members of OPEC-10 failed to meet quota increases in the month,” they wrote. The bank said that Iraq is the top OPEC member with the largest shortfall. In addition, JPMorgan said that a super-cycle remains in full swing. It warned that due to widening spare capacity risk, oil prices are likely to “overshoot to $125 a barrel.”
Meanwhile, investors remain optimistic that talks between the United States and Iran will resume. The two countries are looking at ways to revive their 2015 nuclear deal. However, a senior Iranian security official said that progress remains difficult to achieve at this time.
US Ramping Efforts To Increase Oil Production
The US, concerned over rising crude oil prices, is now seeing its local industry making efforts to increase production. Energy firms are now adding the most oil rigs and installations over the last four years. This is according to data from energy services company Baker Hughes Co. Damages to the Gulf brought about by Hurricane Ida last year slowed down US oil output.

Do you think that Brent crude oil prices will hit $100 per barrel this year? If yes, what does this mean for the US economy?
Tell us what you think. Share your thoughts in the comments section below.
You Might Also Like:
- Declassified Reports Show Biden Admin Mishandled Afghan Exit
- Canada Arrests Truckers, Reopens Vital US-Canada Border Bridge
- Despite Pay Hikes, Americans Are Earning Less Due to Inflation
Keep up to date with the breaking news by following us on Facebook and Instagram.

You may like
SIGN UP FOR BNA NEWSLETTERS

Majority of NYC Voters Believe Crime Is the City’s #1 Issue, Poll Finds

Earthquake Rattles Turkey, Syria; Kills Over 1,300

Majority of California Citizens Belief Gun Control Is More Important Than Gun Rights

Senate Republicans Pushing to Overturn D.C. Law Allowing Illegal Migrants to Vote

Manchin, 49 Other Republican Senators Push to Repeal Biden’s ESG Retirement Rule

Over 1,000 Flights on Monday Gets Canceled Due to a Severe Winter Storm

New Poll Shows Trump Leading by Double Digits in Potential South Carolina Republican Race

New York Gov. Andrew Cuomo Places State ‘On Pause’ Tells Non-Essential Workers to Stay Home

Prominent BLM Activist Charles Wade Charged with Child Trafficking & Prostitution
Obama Is A Tyrant

COMMENTARY: Trump Has a Secret Weapon, the Democratic Party

US Military Plane Crashes in Afghanistan with 5 Onboard
International Women’s Day: Conservative Women Throughout History
This Refugee Wouldn’t Last Long In America

DeSantis calls Special Session to Ban Private Sector Employee Vaccine Mandates

WATCH: Donald Trump, Melania Trump Cheered at National Championship Game

WATCH: Pompeo Joins ‘Fox & Friends’ After US Airstrike Kills Top Iranian General

WATCH: Kanye West Brings Inmates and Guards to Tears During Surprise Gospel Concert at Texas Jail

WATCH: Trump Receives Standing Ovation at Alabama Football Game

WATCH: Taco Bell Foundation Surprises Worker With Scholarship Money
