Oil surges above $ 100 after Putin orders military action against Ukraine

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Oil prices soared above $ 100 a barrel on Wednesday after Russian President Vladimir Putin announced the start of military action against Ukraine.

US Crude Oil Futures As of 10:27 AM Greenwich Mean Time, it has risen 5.46% and is trading at $ 97.56 per barrel. Brent crude oil futures The first time it exceeded $ 100 since 2014 was $ 103.32, up 6.47%.

Meanwhile, at some point natural gas prices soared by nearly 6%.

Prices soared shortly after President Putin announced in a television speech that military operations would begin to protect civilians and “demilitarize” Ukraine in response to alleged threats from Ukraine. Happened.

Immediately after Putin’s announcement of a military operation that the Ukrainian Ministry of Defense called “an unjust, deceptive and ironic invasion”, the explosion occurred not only in Kiev, the capital of Ukraine, but also in other major cities such as Kharkiv, Mariupol and Odessa. It was reported. ..

US Senator Marco Rubio (Florida) said on Twitter a “full-scale and comprehensive military attack” with “airborne and amphibious landings, air force, ground and navy missile attacks, electronic and cyber attacks.” Said that was in progress. & Large ground forces to occupy vast territories. “

Rubio said Ukraine is “invincible and unmanned,” but “they are brave and tough fighters, and you will soon find that the world is already damaging Russian invaders.” ..

Live stream video What CNN got also shows a tank rolling to Ukraine from the Belarusian border crossing around 6:48 am local time.

Epoch Times Photo
The pipes at the Nord Stream 2 gas pipeline landing facility were photographed on February 15, 2022 in Lubmin, Germany. (Michael Sohn, File / AP Photo)

The EU has repeatedly warned that if Russia invades Ukraine, it is ready to impose “massive consequences” on the Moscow economy, but partly due to the close trade relations between EU energy and Russia. Previously, sanctions could not be initiated.

However, on February 23, the European Council of the European Union announcement EU headquarters said it had agreed to sanction 351 Russian members who voted on February 15 in favor of Putin’s appeal to the self-proclaimed Donetsk and Luhansk’s “republic” independence.

Sanctions were also imposed on an additional 27 individuals and groups that the Council of the European Union stated “contributed to the weakening or intimidation of Ukraine’s territorial integrity, sovereignty, and independence.”

Restrictions were also imposed on the economic relations between Donetsk and the non-governmental territories of Luhansk, as well as the ability of Russian states and governments to access EU capital and financial markets and services.

Some EU member states have warned against imposing strong sanctions on energy imports given their dependence on Russia for their energy flow.

Russia is the EU’s fifth-largest trading partner, with imports of $ 177.9 billion and exports of $ 104.1 billion, according to Eurostat.pdf).

According to Eurostat, many EU countries, such as Germany and the Czech Republic, are also highly dependent on Russia’s natural gas, and Russia continued to be the largest supplier of natural gas and oil to the EU in 2021.

Russia is also one of the world’s largest producers of oil and natural gas, accounting for 17% of the world’s natural gas and 12% of oil.

Meanwhile, US President Joe Biden said he would impose sanctions on Russia “far beyond” the sanctions imposed in 2014 after Russia merged the Crimean Peninsula.

These sanctions cover the Russian elite and their families near Putin, as well as two state-owned banks and the country’s sovereign debt.

But while oil prices soared on Wednesday during the Ukrainian escalation, Goldman Sachs said this should not have a significant impact on energy prices.

“Europe imports most of its natural gas consumption from Russia, but the United States is a net exporter of natural gas, and its ripple effect on US gas prices is modest,” said an analyst at a Wall Street bank. Should be. ” Wednesday report..

“Our commodity strategists see the risk as being distorted upwards because the oil market is already tight, but we expect the impact on oil prices to be minor.”

Catabella Roberts


Katabella Roberts is a reporter currently based in Turkey. She focuses primarily on the United States and covers the news and business of The Epoch Times.

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