Oil prices have soared above $100 (£74) per barrel following the decision of Russian President Vladimir Putin to launch a ‘special military operation’ in the eastern Donbas region of Ukraine.
Africa Today News, New York reports that these are the highest levels experienced by the international benchmark Brent crude futures in more than seven years.
Prices had jumped earlier this week just shortly before cooling amid economic sanctions and moves to block a Russian gas pipeline.
Africa Today News, New York reports that Russia is the second biggest exporter of crude oil after Saudi Arabia.
It is also the world’s largest natural gas exporter.
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‘We could see prices keeping the momentum,‘ said Tina Teng, a markets analyst at CMC Markets.
‘Investors are concerned about an even tighter supply, caused by the US sanctions on Russia to target the key supply source, the Nord Stream 2 gas pipeline,’ she told the BBC in an interview which was monitored by Africa Today News, New York.
Nord Stream 2 is a 1,200km pipeline under the Baltic Sea, which will take gas from the Russian coast near St Petersburg to Lubmin in Germany.
The pipeline does not yet have an operating licence – and Germany has now put this on hold.
It took the step after Russia formally recognised two breakaway regions in eastern Ukraine, and sent troops there.
The US, UK and some of their allies have also imposed a series of sanctions on Russia in response to Mr Putin’s actions against Ukraine.
The UK has frozen the assets of five banks and three Russian billionaires, who have also been hit with travel bans.
Recall that British Prime Minister Boris Johnson, had on Tuesday said these sanctions were a ‘first barrage’ and could be extended.
AFRICA TODAY NEWS, NEW YORK