DELHI, NEW DELHI: Heightened tensions between Russia and Ukraine propelled global crude oil prices to around USD 95 per barrel, raising concerns about increased inflationary pressures on an economy that is recovering.

As a result, prices rose to a seven-year high as worries of a Russian invasion of Ukraine grew. Furthermore, a major energy company raised concerns by claiming limited global petroleum supply.

The development is significant because India's crude oil demands are met through imports. The rise in crude oil costs, in particular, has the potential to drive up domestic prices, resulting in inflation.

As a result, Brent prices hit $95 per barrel on Monday, while NYMEX WTI crude oil hit a seven-year high of $94 per barrel.

"Concerns that Russia would attack Ukraine might spark US and European sanctions, affecting Russian shipments in a tight energy market," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Inflation in WPI fell to 12.96 pc in January, despite rising food costs

As crude approaches USD100 a barrel, it will jeopardise Asia's fragile economic recovery

As refiners in India increase their purchases, oil prices gain another boost