Oil prices jump as Putin puts Nuclear forces on alert

Oil prices jump as Putin puts Nuclear forces on alert

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Oil prices soared on Monday as a result of increased sanctions against Russia for its invasion of Ukraine, prompting President Vladimir Putin to activate his country’s nuclear deterrent.

Brent soared back above $100 a barrel, initially soaring more than $7, as fears of oil supplies from the world’s second-largest producer being interrupted were heightened by the nuclear warning and bank payment limits. Russia supplies around ten percent of the world’s oil.

After touching a peak of $105.07 a barrel in early trade, Brent oil futures were up $4.69, or 4.8 percent, at $102.62. After Russia’s invasion began last week, the benchmark touched a more than seven-year high of $105.79.

On Monday, the Brent contract for April will expire. At $99.40, the May contract was up $5.28.

After touching a high of $99.10 earlier in the day, U.S. West Texas Intermediate (WTI) oil futures were up $5.34, or 5.8%, at $96.93 a barrel. Last week, WTI reached a high of $100.54.

According to Stephen Brennock of oil trader PVM, Putin’s decision to place Russian nuclear troops on high alert is a clear and concerning escalation that can only benefit oil prices.

On Monday, anticipation for negotiations between Russia and Ukraine at a location near the Belarusian border held the market steady.

In April, OPEC+ is anticipated to keep adding 400,000 barrels per day of supply.

At market open in Moscow, the Russian rouble was down and over 15% against the dollar and euro.

The rouble was trading at 95.48 to the U.S. dollar, down 15%, and at 107.35 to the euro, down 15.4%, as central banks sold foreign currency to prevent losses in Moscow trade.

In early European trade on Monday, the U.S. dollar jumped. As a result, the USD/RUB exchange rate increased by more than 11% to 92.74. The EUR/USD exchange rate declined 0.7 percent to 1.1187. 

OVR, the rapidly growing metaverse platform, has reached even more milestones, becoming Polygon’s largest gas burner in recent weeks.

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