Oil prices rose on Monday, climbing to their highest level in more than seven years, on fears that a possible Russian invasion of Ukraine could trigger U.S. and European sanctions and disrupt energy exports from the world’s largest producer.
Brent crude futures were at $95.73 a barrel by 0109 GMT, up $1.29, or 1.4%, after hitting a session high of $95.91. U.S. West Texas Intermediate (WTI) crude was up $1.49, or 1.6%, at $94.59 a barrel, hovering near a session high of $94.92.
Global financial markets have been rattled by U.S. comments about an imminent Russian attack on Ukraine.
The United States said on Sunday that Russia could invade Ukraine at any time and could create a surprise pretext for an attack.
“If… a troop movement occurs, Brent won’t have any difficulty rising above $100,” OANDA analyst Edward Moya said in a note.
“Oil prices will remain extremely volatile and sensitive to incremental updates on the situation in Ukraine.” Investors are also eyeing the resumption of talks between the U.S. and Iran on the 2015 nuclear deal.
However, a senior Iranian security official said on Monday that progress in the talks was becoming “more difficult”.
In the U.S., strong oil prices are encouraging energy companies to boost output as they added the most oil rigs in four years last week, energy services firm Baker Hughes said on Friday.
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