Oil Settles Near 2014 High on Ukraine Crisis

23 February 2022

    Oil rose to nearly $100 a barrel on Tuesday, reaching its highest level since 2014 after Moscow ordered troops into two regions in eastern Ukraine.

     

    Both the US and Britain announced sanctions targeting Russian banks, while the EU blacklisted more politicians and Germany put the brakes on the $11 billion Nord Stream 2 gas pipeline project.

     

    "The market obviously pumped in excess risk premium as Russia entered the separatists' portion of Ukraine and this fear premium gradually dissolved”, Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois commented.

     

    Brent traded as high as $99.50 a barrel, its highest since September 2014, before settling at $96.84 with a 1.5% gain. WTI also hit a seven-year high as it peaked at $96 a barrel, before ending at $92.35.

     

    The Ukraine crisis has added further support to an oil market that has surged on tight supplies as demand recovers from the COVID-19 pandemic. Supply has lagged demand, so oil companies have drained inventories to meet demand.


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