US oil benchmark West Texas Intermediate climbs to highest since September 2014
The price of the international benchmark Brent crude oil surpassed $95 per barrel on Friday amid lack of supply and the ongoing tensions between Russia and Ukraine.
The Brent crude oil price hit $95.65 a barrel at 3.03 p.m. EDT (2003GMT), according to official figures, marking the highest level since Oct. 1, 2014.
The price of the American benchmark West Texas Intermediate climbed to as high as $94.65 around the same time – highest since Sept. 30, 2014.
Both crude prices were up almost 4% for the day.
The sudden increase in prices came as the US warned that Russian invasion of Ukraine could begin during the Beijing Olympics.
“We are in the window when an invasion could begin at any time should (Russian President) Vladimir Putin decide to order it It could begin during the Olympics despite a lot of speculation that it will only happen after the Olympics,” President Joe Biden’s National Security Advisor Jake Sullivan said at a press conference.
British Defence Secretary Ben Wallace also said that Russia could invade Ukraine “at any time.”
Ukraine has also asked Russia to explain activities on its borders within the next 48 hours.
On the market front, the supply-demand imbalance continues to drive up prices.
The global oil market is going through an inadequate supply against high demand as the global economy recovers from the coronavirus pandemic.
Energy comes as the primary reason among most countries’ high inflation rate.
Global oil demand has significantly increased since the end of quarantine measures around the world, but oil producing and exporting countries have remained behind the curve in output, causing the supply-demand imbalance.