Crude Oil Price Hike: Global Oil Prices Breach $100 Mark For First Time Since 2014

Oil prices have climbed more than $20 a barrel since 2022 on fears that the United States and Europe would impose sanctions on Russia's energy sector, disrupting supplies

Representative Photo | Getty Images

New Delhi: The global benchmark Brent crude oil futures on Thursday breached $100 per barrel mark for the first time since 2014 on the back of military operations launched by Russia against Ukraine.

The move has sparked fears that a war in Europe could disrupt global energy supplies. Brent crude hit a high of $101.34 a barrel in early Asia trade, the highest since September 2014, according to Reuters.

US West Texas Intermediate (WTI) crude futures jumped $4.22, or 4.6 per cent, to $96.32 a barrel, after rising to as much as $96.51, also the highest since August 2014, according to a Reuters report.

After Russian President Vladimir Putin announced a special military operation, Ukraine's foreign minister Dmytro Kuleba tweeted that Russia had launched a full-scale invasion of Ukraine and was targeting cities with weapons strikes.

How does it impact oil prices?

Oil prices have climbed more than $20 a barrel since 2022 on fears that the United States and Europe would impose sanctions on Russia's energy sector, disrupting supplies.

Russia is the world's second-largest oil producer, mainly selling its crude to European refineries, and is the largest supplier of natural gas to Europe, providing about 35 per cent of the latter's supply.

"Russia's announcement of a special military operation into Ukraine has pushed Brent to the $100/bbl mark," said Warren Patterson, head of ING's commodity research.

"This growing uncertainty during a time when the oil market is already tight does leave it vulnerable, and so prices are likely to remain volatile and elevated," he added.

The Western has already imposed sanctions against Russia for ordering troops into separatist regions of eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbour. However, there are no sanctions on the energy trade.