Oil prices surge above $100 for first time since 2014

Oil prices have surged above $100 per barrel after Russian President Vladimir Putin launched a military operation in Ukraine.

Brent crude, the global benchmark, added more than 6% to trade at $102.80 per barrel by 3:20am ET on Thursday. Brent last traded above $100 per barrel in 2014. US oil prices increased 6% to $97.30 per barrel, reports CNN.

Global oil supplies are very tight. Analysts have warned that any disruptions to exports from Russia, the world’s No 2 oil producer, would drive prices even higher.

Oil prices surged after Russian forces began an attack on Ukraine, with reports of troops crossing the border to the north and south, and explosions in multiple cities including the capital Kyiv.

The International Energy Agency warned earlier this week that military action could put at risk 250,000 barrels per day of Russian oil exports transiting Ukraine via pipeline to supply Hungary, Slovakia and the Czech Republic. However, those countries have ample emergency stocks.

Russia is also the biggest supplier of natural gas to Europe.