Oil surges to highest since 2014 as more Russia sanctions loom

Oil surges to highest since 2014 as more Russia sanctions loom

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An oil worker inspects a pumping jack, also known as a 'nodding donkey,' during drilling operations in an oilfield operated by Bashneft PAO in the village of Otrada, 150kms from Ufa, Russia, on Saturday, March 5, 2016. Photographer: Andrey Rudakov/Bloomberg





Oil soared as the Russian invasion of Ukraine continued to raise the specter of major global supply disruption.

Futures in New York climbed as much as 6.9%, trading above $100 a barrel to the highest since 2014. Brent futures surged to above $104 a barrel. In the latest list of mounting financial penalties against Russia, the world’s third largest oil producer, the European Union is discussing the exclusion of seven Russian banks from the SWIFT messaging system, including VTB Bank PJSC.

“Prices are shooting up the last couple of days because the risk of sanctions really affecting the Russian energy sector” is very high, said Rohan Reddy, a research analyst at Global X Management, a firm that manages $2 billion in energy-related assets.

Wall Street banks including Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. have boosted their oil price forecasts, anticipating possible supply disruptions. Consultant OilX said the probability of heavy disruption of