NEW YORK: Oil prices have risen as geopolitical tensions over Ukraine worsened. On the New York Mercantile Exchange, the West Texas Intermediate for March delivery rose 1.28 dollars, or 1.4 percent, to settle at 92.35 dollars a barrel on expiration day.
On the London ICE Futures Exchange, Brent crude for April delivery rose 1.45 dollars, or 1.5 percent, to close at 96.84 dollars a barrel. According to Dow Jones Market Data, the worldwide benchmark's front-month contract reached its highest level since September 29, 2014.
According to reports, the oil rally came over fears about the ongoing Ukraine situation.
On Tuesday, Russian President Vladimir Putin signed decrees declaring the independence of two self-proclaimed republics in eastern Ukraine's Donbass, dubbed "the Lugansk People's Republic (LPR)" and "the Donetsk People's Republic (DPR)" respectively.
"This is a significant escalation in the Russia-Ukraine war, and the West is likely to respond by slapping harsh sanctions on Russia. It also increases the likelihood of Russian oil and gas shipments being disrupted "In a report published Tuesday, Carsten Fritsch, Energy Analyst at Commerzbank Research, stated.
European Union agrees Russia sanctions package, warns of more action
