Oil markets are watching Russia’s actions in Ukraine and Western sanctions that could disrupt Russian energy supplies.
Oil prices rose more than $2 to a seven-year high on Tuesday after Russia ordered troops into two breakaway Ukrainian regions.
The United States and European countries condemned the decision, but a Biden administration official said Russia’s military actions did not yet constitute an invasion that could unleash a large sanctions package.
Brent crude futures were trading up $2.10, or 2.2%, at $97.49 a barrel, after rising 2% on Monday. At an early point the figure hit $97.66, its highest price since September 2014.
West Texas Intermediate (WTI) futures jumped $3.25, or 3.6%, to $94.32 a barrel from Friday’s close. The US market was closed on Monday for Presidents’ Day.
Analysts say the big question mark in oil markets is what could happen to Russia’s energy exports in the event of an invasion of Urania that triggers Western sanctions against Russian financial institutions.