Title: Oil surges above $100 for first time since 2014 as Russia attacks Ukraine

Feb 24, 2022 12:57AM ET

By: AnalysisWatch

Oil prices rose above $100 a barrel on Thursday for the first time since 2014 after Russia attacked Ukraine.

After President Vladimir Putin authorized what he called a special military operation, Ukrainian Foreign Minister Dmytro Kuleba said in a tweet that Russia had launched a full-scale invasion of Ukraine and was attacking cities by force of arms.

Brent crude oil hit $102.48 a barrel, its highest since September 2014, and was at $102.06 a barrel at 12:47 p.m. ET, up to $5.22, or 5.4%.

West Texas Intermediate crude futures in the United States rose $4.85, or 5.3 percent, to $96.95 per barrel after earlier reaching a high of $97.40, the highest since August 2014.

Oil prices have risen more than $20 a barrel since the start of 2022 as the US and Europe have imposed sanctions on Russia's energy sector that could disrupt supplies.

Russia is the world's second-largest oil producer, selling most of its crude to European refiners, and is the biggest supplier of natural gas to Europe, accounting for about 35% of European supply.

Western countries and Japan imposed new sanctions on Russia on Tuesday for ordering troops into separatist areas in eastern Ukraine and threatened further action if Moscow launches a full-scale invasion of its neighbor.

Some members of the Organisation of Petroleum Exporting Countries said there was no need for the group and its allies to increase output further because a possible deal between Iran and world powers would increase supply. Some OPEC members are already struggling to meet current targets.

Analysts also warn of inflationary pressures on the world economy from a $100 oil price, especially for Asia, which imports most of its energy needs.