Crude oil rose to a seven- year high on Tuesday as Moscow ordered troops into two breakaway regions in eastern Ukraine escalating the chances of an war.
President Vladimir Putin recognized two self-proclaimed separatist republics in eastern Ukraine and ordered the Defense Ministry to send what he called “peacekeeping forces” to the breakaway regions.
The U.S. and Europe condemned the latest moves. The Biden administration has warned Russia’s troop buildup near Ukraine signals a possible invasion, something the Kremlin has repeatedly denied.
Crude oil inched up sharply from previous session with WTI up by 2.94% to $93.75 per barrel while Brent is up by 1.87% to $96.89 per barrel. Earlier Brent hit $97.00 level underscoring a fresh seven year high.
Traders are in doubts on whether Russian oil exports would be disrupted if Moscow goes to full scale invasion and western governments imposing sanctions against Russian financial institutions.
“There’s a lot of uncertainty,” Westpac senior economist Justin Smirk said to Reuters. “Will Russia be willing to supply on credit?”
