Oil soared because geopolitical tensions between Russia and Ukraine kept the market on edge and volatility high.
(European stocks fell regarding 2% due to Ukraine and inflation).
El crudo West Texs Itermediate superor US$95 per barrel for the first time since 2014.
For its part, The price of a barrel of Brent oil for delivery in April ended this Monday in the London futures market at 96.48 dollars, 2.12% more than at the end of the previous session.
North Sea crude, a benchmark in Europe, ended the day on the International Exchange Futures with an increase of 2 dollars compared to the last trade, when it closed at 94.48 dollars.
El leader ucraniano Volodymyr Zelenskiy spooked markets with what appeared to be a sarcastic comment regarding the rest of the world predicting a date for a Russian attack.
Russia has repeatedly denied it plans to invade and its foreign minister has said it would propose continuing diplomatic engagements with the West.
(Tension in Europe: Would Russia Invade Ukraine in a Matter of Days?).
A potential Russian invasion of Ukraine might not only disrupt crude supplies, but might also trigger retaliatory US sanctions.
“With the lack of clarity on the effect on oil and incredibly low inventories, the market is definitely worried and buying”said Scott Shelton, ICAP energy specialist.
The situation enters a potentially decisive week. Russia might carry out offensive military action or try to spark a conflict inside Ukraine this week, national security adviser Jake Sullivan said on Friday.
Russia has amassed troops near the Ukrainian border, though Russian President Vladimir Putin has repeatedly said his country has no plans to invade its smaller neighbor.
Oil prices are trading at 2014 highs, as the crisis reinforces a rally that has been underpinned by rising global demand, supply disruptions and declining reserves.
His weekly winning streak was the longest since October, before the appearance of the omicron variant.
A possible conflict, coupled with retaliation from the US, might alter world energy flows. Although crude oil has swung wildly in recent days as tensions around Ukraine rise, the underlying market remains strong.
Physical barrels quoted from a key global benchmark are reaching unprecedented levels, and the spread between the two closest Brent crude futures contracts exceeded $2 a barrel, a bullish indicator.
Oil options markets saw increased activity following prices soared on Friday on tensions in Ukraine.
operators they are paying high premiums for bullish call options, where a higher price would benefit the buyer.
They are the most expensive relative to bear put options since 2019, according to data from Bloomberg.
BLOOMBERG
