The oil prices steadied after reaching their highest point in more than seven years due to Russia’s possible invasion of Ukraine. Such an event could trigger US and European sanctions that would disrupt exports from one of the world’s major producers.
Brent oil hit $94.33/barrel, a price of $93.11 a barrel. Previously, it had hovered near $94.94/barrel – the loftiest since September 2014. Analysts believe that the market is currently very sensitive to any news about potential supply disruptions. The inventories are low and spare capacity at oil producers is expected to fall further.
Moreover, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) struggled to boost the output, despite the monthly pledges to increase production by 400,000 barrels per day until March. This added to the ongoing tensions.
Also, the US Dollar rose along with the Yen and Swiss Franc as investors turned to safe-haven assets. According to US officials, Russia could make a surprise move and create a pretext for an attack. Russia denied such plans.
The Dollar Index rose 0.4% to 96.328 – the highest reading since February 1.
Sources: investing.com, reuters.com