# Oil climbs on growing fears of conflict over Ukraine
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-22
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: Oil prices soar to 7-year high after Russia troops move
Meta Description: Oil prices soar after Russia orders troops into breakaway regions, raising fears of war. Brent crude hits $97.49/barrel, WTI jumps 3.6% to $94.32.
URL: https://financedigest.com/oil-climbs-on-growing-fears-of-conflict-over-ukrainehtml

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By Sonali Paul

MELBOURNE (Reuters) – Oil prices jumped more than $2 to a fresh seven-year high on Tuesday after Moscow ordered troops into two breakaway regions in eastern Ukraine, escalating a crisis that western leaders have warned could spark a war.

U.S. and European officials condemned the moves, but a Biden administration official said [Russia’s military action did not as yet constitute an invasion that would trigger a broader sanctions](https://www.financedigest.com/russia-unleashes-rockets-after-mariupol-ceasefire-eu-eyes-oil-sanctions.html "Russia unleashes rockets after Mariupol ceasefire, EU eyes oil sanctions") package.

Brent crude futures rose $2.10, or 2.2%, to $97.49 a barrel at 0132 GMT, adding to a 2% gain on Monday. Earlier on Tuesday it hit $97.66, its [highest since](https://www.financedigest.com/russian-inflation-accelerates-to-7-61-m-m-in-march-highest-since-1999.html "Russian inflation accelerates to 7.61% m/m in March, highest since 1999") Sept. 2014.

U.S. West Texas Intermediate (WTI) [crude futures jumped](https://www.financedigest.com/russian-urals-crude-oil-prices-jump-ahead-of-eu-embargo.html "Russian Urals crude oil prices jump ahead of EU embargo") $3.25, or 3.6%, to $94.32 a barrel versus Friday’s settlement. The U.S. [market was closed](https://www.financedigest.com/home-care-chemicals-market-is-expected-to-expand-at-a-cagr-close-to-5-over-the-assessment-period-of-2021-and-2031.html "Home Care Chemicals Market is expected to expand at a CAGR close to 5% over the assessment period of 2021 and 2031") on Monday for a public holiday.

Responding to the Russian troop movements after Moscow recognised two breakaway regions as independent, Ukrainian President Volodymir Zelensky accused Russia of violating Ukraine’s sovereign territory, in an [address to the nation](https://www.financedigest.com/britains-new-king-will-address-the-nation-on-friday.html "Britain’s new king will address the nation on Friday") early on Tuesday.

He said his country wanted a diplomatic solution to the crisis but was ready to dig in for the long haul.

Analysts say the big question hanging over the [oil market is whether Russian energy exports](https://www.financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discounts.html "U.S. oil exports to Europe hit record in March on steep discounts") would actually be disrupted if Moscow went ahead with a fullscale invasion of Ukraine and western governments imposed sanctions against Russian financial institutions.

“There’s a lot of uncertainty,” Westpac senior economist Justin Smirk said. Will [Russia be willing to supply](https://www.financedigest.com/exclusive-kazakh-mcdonalds-shut-outlets-temporarily-after-halting-supplies-from-russia-sources.html "Exclusive-Kazakh McDonald’s shut outlets temporarily after halting supplies from Russia – sources") on credit?

(Reporting by Sonali Paul; Editing by Shivani Singh)


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