daniel chigunwe
Oil prices rose yesterday, climbing towards their highest levels in over seven years on fears that a possible invasion of Ukraine by Russia could trigger sanctions from US and Europe and disrupt energy exports from the world’s top producer.
Brent crude futures were at US$95,73 a barrel by 0109 GMT, up US$1,29, or 1,4 percent, after earlier hitting an intra-day high of US$95,91.
US West Texas Intermediate crude rose US$1,49, or 1,6 percent, to US$94,59 a barrel, hovering near a session-high of US$94,92.
Comments from the US about an imminent attack by Russia on Ukraine have rattled global financial markets.
Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the US said on Sunday.
“If . . . troop movement happens, Brent crude won’t have any trouble rallying above the US$100 level,” OANDA analyst Edward Moya said in a note.
“Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation.”
Investors are also watching talks between the US and Iran to revive the 2015 nuclear deal.
However, a senior Iranian security official said yesterday that progress in talks was becoming “more difficult”.
In the US, the robust oil prices are encouraging energy firms to ramp up output as they added the most oil rigs in four years last week, energy services firm Baker Hughes Co said last Friday. — Reuters.
Online Reporter