Oil on the boil: Brent races to $105 amid Russia-Ukraine hostilities
New Delhi, February 24, 2022
Brent-indexed crude oil prices climbed to $105 a barrel on Thursday after Russian President Vladimir Putin announced a military operation in Ukraine.
This is the first time since 2014 that crude oil prices have crossed the $100 per barrel mark.
Besides, crude oil prices surged by 5.50 per cent near $97.22 per barrel on the NYMEX WTI index.
The surge in crude oil prices comes after Russia launched operations against Ukraine.
Russia is one of the world's top producers of crude oil and any western sanctions against Russia will stiffen the global supply.
For India, the development assumes significance as the country is import-dependent to fulfil its crude oil needs.
The rise in crude oil prices can escalate domestic prices, thereby triggering inflation.
"Crude oil prices have rallied on Russian invasion of Ukraine triggering buying on geopolitical risk and possible supply disruption," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
"We can expect crude oil prices to trade firm with Brent oil resistance near $110 per barrel as NATO supported Ukraine while no retaliation announced yet."
IIFL Securities VP, Research, Anuj Gupta said: "Brent has hit $105 levels soon and it might soon reach $110."
Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research said: "As the global economy witnesses a drop in headwinds from the Covid pandemic, new geo political risks emerge from the Russia-Ukraine conflict and if turns out to be a prolonged affair, crude oil prices are likely to stay above $100 over the near term."