International Business: Oil hits highest since 2014 on Russia-Ukraine escalation – Gulf Digital News

International Business: Oil hits highest since 2014 on Russia-Ukraine escalation – Gulf Digital News

Oil hit its highest since 2014 on Tuesday as tensions between Russia and Ukraine escalated after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to supply concerns that are pushing prices to near $100 a barrel.

The United States and its European allies are poised to announce new sanctions against Russia after President Vladimir Putin formally recognised the two regions in eastern Ukraine, escalating a security crisis on the continent. read more

"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 $3.48, or 3.7%, at $98.87 at 0900 GMT, having earlier reached $99.38, the highest since September 2014.

US West Texas Intermediate (WTI) crude jumped $4.41, or 4.8%, to $95.48 versus Friday's settlement, having earlier reached $96, also the highest since 2014. The US market was closed on Monday for a public holiday.

The crisis over Ukraine has added further support to an oil market that has surged due to tight supplies as demand recovers from the coronavirus pandemic.

The Organisation of the Petroleum Exporting Countries and allies,