International Business: OIL BONANZA: Oil settles near 2014 high on Russia-Ukraine escalation – Gulf Digital News

International Business: OIL BONANZA: Oil settles near 2014 high on Russia-Ukraine escalation – Gulf Digital News

Oil has risen to its highest since 2014 after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns that are pushing prices towards $100 a barrel.

The prospect of a disruption to energy supplies and fears of war – stoked by reports of shelling in some areas and movements of unmarked tanks in the rebel-controlled city of Donetsk – also rattled international financial markets yesterday.

Nato Secretary General Jens Stoltenberg said that the alliance believed that Russia is still planning a big assault on Ukraine.

Germany put the certification of the Nord Stream 2 gas pipeline from Russia on ice while the US and EU discussed potential sanctions as Ukraine reported continued shelling in east Ukraine.

“The potential for a rally over $100 a barrel has received an enormous boost,” said Tamas Varga of oil broker PVM. “Those who have bet on such a move anticipated the escalation of the conflict.”

Brent crude, the global benchmark, was up $1.93, or two per cent, at $97.32 by 1448 GMT, having earlier reached its highest since September 2014 at $99.50.

The Ukraine crisis has added further support to an oil market that has surged on tight supplies as demand recovers from the