Russia’s Invasion Of Ukraine: Oil prices hit seven-year high

The price of oil has jumped to a seven-year high to nearly $105 following Russia’s invasion of Ukraine.

Brent crude soared 6.6 percent higher at $103.21 a barrel, the highest since August 2014, while US light crude has jumped 6.2 percent to $97.75 a barrel.

Gas prices are also on the rise, up by 40 percent, amid fears that the conflict will disrupt global supply chains.

President Joe Biden acknowledged a wave of incoming turbulence in gas prices but vowed that his administration would do “everything” it could to minimise the effects felt by Americans.

Top buyers of Russian are oil struggling to secure guarantees at Western banks or find ships to take crude from one of the world’s largest producers.

At least three major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases, Reuters reported.

Russia produces every tenth barrel in the world.

The oil market is already suffering from tight supplies due to years of low investment and amid booming demand as pandemic-linked restrictions ease around the world.

Meanwhile, world markets also plunged steeply.

Panicked investors fled for the safety of fixed income assets as markets reacted to the worst case geopolitical scenario on the back of the impact of sky-high inflation.