Crude oil futures closed higher on Monday than they have in more than 7 years, as the United States and the West may impose sanctions on Russia if Russia decides to invade Ukraine. This situation will then affect oil exports from Russia.
- WTI crude futures were up $2.36, or 2.5%, at $95.46 a barrel.
- BRENT crude futures rose $2.04, or 2.2%, at $96.48 a barrel.
John Kilduff, a partner at Again Capital, explained that oil markets remain very sensitive to tensions between Russia and Ukraine. This is because Russia is one of the largest oil and gas producers in the world.
Concerns that Russia could face Western sanctions if it invades Ukraine have pushed oil prices near $100 a barrel.
As for the current situation, U.S. Secretary of State Antony Blinken has ordered the relocation of the American Embassy from Kyiv to Lvue in western Ukraine, as the situation in the Ukrainian border area has become very tense.
U.S. National Security Advisor Jake Sullivan urged U.S. citizens to leave Ukraine immediately. Expecting possible disasters if Russia decides to invade Ukraine.
Investors are paying attention to the EIA’s weekly report on U.S. oil inventories, which will be released tomorrow.
The Spot Market is Open
Tuesday, February 15, 2022