Oil Prices Highest Since 2014 Amidst Rising Russia-Ukraine Tensions

Oil prices today: Brent Crude oil price rose 3.7 per cent to $98.97 per barrel on Tuesday. The prices of Brent Crude were $99.38 per barrel last in September 2014.

New Delhi: Oil prices have risen to the highest level since 2014 as the Russian President gave recognition to regions of Donetsk and Luhansk in Eastern Ukraine as independent countries. According to a report by Reuters, Moscow has ordered troops in the two regions. This has renewed worries of the oil prices hitting the $100 per barrel mark soon.

According to the report, the Brent Crude oil price rose 3.7 per cent to $98.97 per barrel on Tuesday. The prices of Brent Crude were $99.38 per barrel last in September 2014.

According to media reports, the USA has announced that it will impose hard sanctions on Russia for its decision. Allies of the USA, including Japan, have iterated that they will follow suit. Russia’s decision is expected to destabilise the security and peace in the region.

Supply Constraints Pushing Oil Prices Upward

According to Reuters, this comes at a difficult time as demand was recovering post-Covid pandemic and now supply constraints are expected to push the prices higher. Quoting an expert, the report said that the prices may soon touch $100 per barrel.

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Alongside supply constraints from Russia, which is one of the biggest supplies of oil to the world, OPEC+ or Organization of Petroleum Exporting Countries has also resisted calls to boost the oil supply.

Situation As Grave As 1962 Cuban Missile Crisis

According to the report, a British Minister said that the invasion has made the crisis as grave as the 1962 Cuban missile crisis. In 1962, the face-off between the USA and the Soviet Union left the world on the brink of a nuclear war.

However, the talks with Iran on renewing the nuclear agreement are going on. After the agreement is extended, it may lead to a major relaxation in oil supply to the world. According to the report, Iran may export up to 1 million barrels of oil per day.