Oil hovers above $120 as energy war looms – The National

Oil hovers above $120 as energy war looms – The National

Live updates: follow the latest news on Russia-Ukraine

Oil prices remained above $120 a barrel on Tuesday after hitting a 14-year high yesterday, with Russia warning that it retains the option to cut natural gas supplies to Europe through the Nord Stream 1 pipeline if the US and its EU allies ban its crude imports in response to its military offensive in Ukraine.

Such a move would shake energy markets further and exacerbate inflationary pressures globally. Russia could stop the flow of gas through pipelines from the country to Germany after Berlin decided to stop the opening of the new Nord Stream 2 pipeline, Russian Deputy Prime Minister Alexander Novak, who is also in charge of energy affairs said in a televised speech on Monday.