By Kola Alhassan with agency reports
Speculations are rife that oil price could hit $100 per barrel after seven years, with the escalation of tension between Russia and Ukraine disrupting oil supply.
IkejaBird gathered that as of Tuesday morning, Brent crude was at $99.36, the highest price since August 1, 2014.
Price for U.S. West Texas Intermediate (WTI) crude was at $95.86 per barrel.
Sources said the latest price was far above the oil benchmark of $62 per barrel in Nigeria’s 2022 budget.
This came after Moscow directed troops into two breakaway areas in eastern Ukraine.
Russia President Vladimir Putin said Ukraine was an integral part of Russia’s history, adding that eastern Ukraine was ancient Russian land.
His words: ” I deem it necessary to make a decision that should have been made a long time ago – to immediately recognise the independence and sovereignty of the Donetsk People’s Republic and the Luhansk People’s Republic.”
He noted that if Ukraine joined the North Atlantic Treaty Organization (NATO), it would be a threat to the security of Russia.
Russia remains one of the world’s major oil producers and also consumers of energy.
However, with the U.S mulling sanctions, it could further affect oil prices in the days ahead.
Picture credit: the owner
