LONDON, Feb 23 (NNN-AGENCIES) — Oil prices are climbing on fears that the Ukraine-Russia crisis will disrupt supply chains across the world.
Futures of Brent crude, the international benchmark, reached a seven-year high of almost $98 on Tuesday after Russia recognised breakaway rebel regions in Ukraine’s east as independent states.
The UK and several western allies have threatened sanctions on the country.
Russia is the second largest exporter of crude oil after Saudi Arabia.
It is also the world’s top producer of natural gas.
The border tensions may have “substantial implications”, Sue Trinh of Manulife Investment Management said.
Sanctions forcing Russia to supply less crude or natural gas would have “important impact on the global economy,” she added.
Western powers fear Putin’s recognition of the rebel-held areas paves the way for Russian troops to officially enter Ukraine’s east.
The self-declared People’s Republics of Donetsk and Luhansk are home to Russia-backed rebels who have been fighting Ukrainian forces since 2014.
Russia’s move effectively ends peace talks in the region, which has been under a tenuous ceasefire for years.
