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Title: Oil soars as Russia puts nuclear forces on alert, bank sanctions bite


Feb 28, 2022 02:06AM ET


By: AnalysisWatch


Oil prices rose on Monday after sanctions against Russia were tightened over its invasion of Ukraine and President Vladimir Putin put his country's nuclear capability on high alert.


The price of Brent crude, which had initially topped $7 a barrel, rose back to $100 a barrel as warnings over nuclear weapons and restrictions on bank payments raised fears that oil supplies from the world's second-largest producer could be disrupted. Russia accounts for about 10 percent of the world's oil supply.


Brent crude futures were up $4.69, or 4.8 percent, at $102.62 per barrel at 1:43 p.m., after peaking at $105.07 in early trading.


The benchmark hit a more than seven-year high of $105.79 last week following Russia's invasion of Ukraine. The April contract for Brent crude expires on Monday.


The May contract rose from $5.28 to $99.40.


West Texas Intermediate crude futures in the United States rose $5.34, or 5.8 percent, to $96.93 after reaching a high of $99.10 earlier in the day.


WTI rose to $100.54 last week.


OANDA analyst Geoffrey Haley said gains were limited because it was still unclear whether banks and energy payments affected by SWIFT sanctions would be exempt. On Monday, markets stabilized on hopes that Russia and Ukraine would hold talks near the Belarusian border, the first such meeting since Russia invaded the neighboring country last week.

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