'Ukrainian Tensions' Push Oil Prices to 7-Year High... WTI Surpasses $95

[Asia Economy New York=Special Correspondent Joselgina] Amid rising concerns over Russia's invasion of Ukraine, international oil prices surpassed $95 per barrel on the 14th (local time). There is also a possibility that prices will soon exceed the $100 mark. Goldman Sachs recommended investing in crude oil and gold, stating that prices could rise further to $125 per barrel.

On that day, the price of March delivery West Texas Intermediate (WTI) crude oil was trading at $95.02 per barrel, up 2.06% ($1.92) from the previous session at the New York Mercantile Exchange. During the session, prices briefly rose to $95.82 per barrel before calming somewhat. This is the first time WTI has surpassed $95 per barrel since the second half of 2014. The April delivery Brent crude on the London ICE Futures Exchange also traded around $96 per barrel, marking the highest level since 2014.

This rise in oil prices is due to growing fears that Russia's invasion of Ukraine is imminent. Nishant Bushan, a market analyst at global energy research firm Rystad Energy, said, "Russia is one of the world's largest oil producers," adding, "If oil supply from Russia is cut off, WTI and Brent prices could soar above $100 per barrel."

Russia's daily oil production reaches 11.2 million barrels, exporting about 5 million barrels, which accounts for approximately 12% of global oil trade volume. If the invasion of Ukraine materializes, Russia's oil exports could deliver a direct blow amid an already supply-constrained market.

Goldman Sachs also recommended commodity investments as a hedge against recent geopolitical risks in an investor note released that day, highlighting crude oil and gold. Goldman Sachs stated, "Considering current supply and demand and the situation in the U.S. shale industry, further increases in international oil prices are clear," forecasting that prices could rise to $125 per barrel.

Meanwhile, the U.S. State Department officially announced that it would close its embassy in Kyiv, the capital of Ukraine, and relocate to Lviv in western Ukraine. The U.S. government believes that Russia could invade Ukraine at any time.