[Asia Economy New York=Special Correspondent Joselgina] As fears of war surrounding Ukraine rapidly escalate, international oil prices nearly reached $100 per barrel during trading hours. Concerns have been raised that if the conflict between Russia and Ukraine escalates into a full-scale war, not only will the price surpass $100 per barrel, but the entire world could be engulfed in an energy crisis.
On the 22nd at the New York Mercantile Exchange, the March West Texas Intermediate (WTI) crude oil price closed at $92.35 per barrel, up $1.28 (1.4%) from the previous session. As geopolitical tensions between Russia and Ukraine intensified, WTI prices surged more than 5% intraday to reach $96 per barrel.
At the London ICE Exchange, April Brent crude oil prices also rose more than 6% intraday to $99.44 per barrel, marking the highest level since September 2014. There are widespread expectations that the $100 per barrel mark is not far off.
Russia is one of the world's largest crude oil producers, and an invasion of Ukraine would inevitably disrupt oil flows. Russia’s daily crude oil production reaches 11.2 million barrels. Its daily exports amount to 5 million barrels, accounting for about 12% of global crude oil trade volume.
Russian President Vladimir Putin approved the independence of the self-proclaimed Donetsk People's Republic (DPR) and Luhansk People's Republic (LPR), pro-Russian separatist forces in eastern Ukraine's Donbas region, and ordered troops to be sent under the pretext of peacekeeping forces the day before. Subsequently, the Russian Federation Council approved President Putin’s request for troop deployment on the same day.
The West, including the United States, strongly condemned Russia’s actions and imposed sanctions. U.S. President Joe Biden, in a speech that afternoon, declared that Russia’s invasion of Ukraine had begun and announced sanctions targeting Russian financial institutions, national debt, leadership, and their families.
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