Oil prices rocket to seven-year highs amid Russia-Ukraine stand-off

• Brent crude rose 55 cents to $94.99 a barrel

• US benchmark WTI crude, rose 85 cents to $93.95 a barrel

As the world braces itself for a military takeover of Ukraine by Russia, oil prices head for seven-year highs.

International benchmark Brent crude rose 55 cents to $94.99 a barrel by 1:18 PM ET, after touching its highest since October 2014 at $96.16.The U.S. benchmark, West Texas Intermediate (WTI) crude, rose 85 cents to $93.95 a barrel, after hitting $94.94, the loftiest since September 2014.

Also Read: US oil benchmark hits $90 a barrel for the first time in seven years

On Sunday, the US announced that Russia could invade Ukraine at any time and might create a surprise pretext for an attack. Russia has gathered thousands of troops near Ukraine's borders but denies its plans to invade and has accused the West of hysteria. 

A Russian invasion of Ukraine could push oil above $100 a barrel, at least temporarily. Europe would suffer a major energy shock as Russia is a key energy supplier to Europe.

Temporary respite

The oil market cooled briefly after Ukrainian Ambassador Vadym Prystaiko said that Ukraine was prepared to make some concessions to Russia. However, prices resumed their upward momentum soon after, reported Reuters.

Also Read: Russia-linked crypto addresses received 74% of ransomware revenue in 2021

Russian Foreign Minister Sergei Lavrov suggested that Moscow should continue to talk with the U.S. and its allies even though they have rejected Russia’s main Russian security demands. 

Supplies have been stretched as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, have struggled to deliver monthly pledges to increase output by 400,000 barrels per day (bpd) until March.

Meanwhile global financial markets are rattled due to the impending threat. The S&P 500 fell by nearly 19% on Monday as investors braced themselves for the outcome of the geopolitical tensions between Russia and Ukraine.

Also Read: White House warns for chipmakers to diversify supplies amid tensions with Russia