Oil surges on Russia nuclear alert as sanctions intensify

Publish date: Mon, 28 Feb 2022, 01:11 PM
MELBOURNE: Oil prices jumped more than US$7 in early trade on Monday (Feb 28) after Russian President Vladimir Putin put the country's nuclear deterrent on high alert in the face of Western nations and Japan stepping up sanctions against Russian banks.
 
The nuclear alert and bank payment constraints heightened fears that oil supplies from the world's second-largest producer could be disrupted as Russia digs in following its invasion of neighbouring Ukraine.
 
Brent crude futures were up US$5.46, or 5.6%, at US$103.39 at 2331 GMT after hitting a high of US$105.07 a barrel shortly after trade opened. Last week, the benchmark contract hit a more than seven-year high of US$105.79 after the invasion began.
 
US West Texas Intermediate (WTI) crude futures were up US$5.64, or 6.2%, at US$97.23 a barrel after hitting a high of US$99.10 shortly after opening. WTI hit a high of US$100.54 last week.
 
Putin raised the stakes on Sunday, ordering Russia's "deterrence forces" (which wield nuclear weapons) onto high alert, citing aggressive statements by NATO leaders and the range of economic sanctions imposed on Russia by the West.
 
"President Putin's decision to put Russian nuclear forces on high alert is a clear and worrying escalation that can only be supportive of oil prices. I reckon we could be in for some price fireworks in the morning," Stephen Brennock of oil broker PVM told Reuters.
 
 
 - Reuters
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LALA

DON'T WORRY ABOUT HARD TIMES BECAUSE SOME OF THE MOST BEAUTIFUL THINGS WE HAVE IN LIFE COME FROM CHANGES AND MISTAKES.

2022-03-01 11:51

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