Global oil prices soar above $100 and could go much higher

Global oil prices soar above $100 and could go much higher

New York/London (CNN Business) Oil prices surged above $100 per barrel after Russia launched an invasion of Ukraine, piling pressure on a global economy already reeling from rampant inflation.

Brent crude, the global benchmark, added 8.5% to trade at $105.40 per barrel by 5:30 a.m. ET on Thursday. Brent last traded above $100 per barrel in 2014. US oil prices increased 8% to over $100 per barrel.

A broad offensive by Russian forces targeted military infrastructure across Ukraine as well as several airports early Thursday. The assault began hours before dawn and quickly spread across central and eastern Ukraine as Russian forces attacked from three sides.

Russia is the world’s No. 2 oil producer and a major exporter of natural gas. Supply disruptions could drive retail prices higher, making it more expensive for people around the world to fuel their cars and for Europeans to heat their homes. Gasoline prices are already at record levels in parts of Europe.

Global oil supplies were already very tight. Crude oil for near-term delivery is commanding a record premium over longer dated contracts, according to analysts at UBS, as investors react to dwindling inventories and increased demand. Some refineries are avoiding buying Russian oil due to sanctions