Following the Russia-Ukraine war’s impact on global energy supplies, oil prices soared above $113 per barrel on Wednesday and equities sank as investors express fears over key producer, Russia’s intensifying assault on Ukraine.
The invasion by Russian President, Vladimir Putin, into the neighbouring country has made world markets spiral over the past week, causing uneasiness on trading floors due to unstable inflation and tighter central bank monetary policies.
The crisis has, however, made a number of countries hit Moscow with series of wide-ranging sanctions that have isolated Russia and threatened to crash its economy.
But the main source of unease on trading floors is crude, which has rocketed since Russia began preparing for the invasion.
On Wednesday, Brent topped $110 for the first time since 2014 and WTI followed suit hours later to hit a 2013 high.
In Asian trade this afternoon, Brent rose as high as $113.02 and WTI peaked at $111.50.
Meanwhile, incoming sanctions have fuelled worries that exports will be cut off from Russia, the world’s third-biggest producer of the commodity.
However, marketers are waiting upon a meeting which includes OPEC and other major producers, including Russia, which will determine whether to ramp up output to temper the price rises, which will otherwise help reduce inflation.
The US President, Joe Biden, in his State of the Union address, stated that the United States would join a 30-country deal to release 60 million barrels to help temper the surge in prices.
Analysts have, however, expressed that such moves would likely only have a limited impact.