ARAB NEWS: Oil prices surged close to $100 a barrel on Feb.22. amid ongoing tension between Ukraine and Russia.
As fears of a supply shortage due to Russian aggression grew, the price of Brent crude oil futures contracts April delivery on London’s ICE rose by 4.18 percent to $99.38 on Tuesday morning, the highest since 2014.
West Texas Intermediate rose as much as 4.4 percent to $94.65 a barrel.
Oil has been trading at record highs in recent days due to concerns of possible disruptions in supply that may happen if Russia invades Ukraine.
However, Moscow repeatedly denied the possibility of a military incursion, giving hope that oil prices will stabilize.
Alongside this unprecedented rise in oil prices, Germany halted the Nord Stream 2 Baltic Sea gas pipeline project, which is considered Europe’s most divisive energy project, worth $11 billion.
The Nord Stream 2 Baltic Sea gas pipeline project was designed to double the flow of Russian gas direct to Germany. Even though the project was completed in September 2021, it has been idle due to the non-receipt of certification by Germany and the EU.
Russia makes up for a third of Europe’s natural gas production, and 10 percent of the global oil production. Oil prices could further fluctuate and rise in the coming days as third of Russian gas supplies to Europe are traveling through Ukraine.