Oil nears $100 as West prepares Russian sanctions

Oil nears $100 as West prepares Russian sanctions

Brent North Sea crude oil reached $99.50 per barrel, the highest level in seven years. At around 1330GMT, it pulled back to just below $98, still a gain of around 2.4 per cent compared with late Monday.

The jump in oil prices is compounding worries about inflation around the world, with the US Federal Reserve coming under intense pressure to tighten monetary policy to prevent prices running out of control. — File photo

By AFP Published: Tue 22 Feb 2022, 7:10 PM

Oil prices surged close to $100 per barrel Tuesday as major crude producer Russia prepared to send troops into two breakaway regions of Ukraine, sparking Western nations to ready economic sanctions against Moscow.

After heavy falls at the open, European stocks edged into positive territory as the Kremlin said it remained open to all diplomatic contact over Ukraine.

“The old adage goes that the market hates uncertainty and while that has clearly been evident at times over the last couple of weeks, there’s no doubt that investors continue to be tempted back in at the slightest hint of diplomacy winning the day,” said market analyst Craig Erlam at Oanda trading platform.

On Wall Street, the three main indices opened lower after a three-day holiday