Oil prices surge as Russia-Ukraine crisis escalates

Oil prices surge as Russia-Ukraine crisis escalates

Oil prices jumped as the crisis between Russia and Ukraine escalated. On Monday evening, of eastern Ukraine and said he would recognize the independence of Donetsk and Luhansk. In Asia morning trade Tuesday, surged 3.22% to $94 per barrel, while jumped 1.5% per barrel to $96.82. Rising tensions have sent jitters through markets, driving oil prices higher. On Friday, U.S. President Joe Biden said the Russia has built up some 150,000 troops along its border with Ukraine, and the Biden administration said last week that as many as 7,000 additional troops have joined. The military tensions have sparked concerns that Russia may be preparing to invade Ukraine, triggering fears of a repeat of the Kremlin's illegal annexation and occupation of Crimea in 2014. Russia was the  last year, and these tensions are lending support to oil prices. Crude prices recently crossed $90 per barrel, representing an increase of more than 20% this year and a rally of more than 80% since the beginning of 2021. Those gains, however, can also be attributed to other factors such as tight supply. Oil could spike to $110 per barrel if the crisis worsens, according to Andy Lipow, president of Lipow Oil Associates.