Oil prices soar as traders assess new sanctions on Russia

New York, U.S. | Xinhua | Oil prices surged on Monday with Brent benchmark ending above 100 U.S. dollars a barrel, as investors assessed the impact of the latest sanctions against Russia.

The West Texas Intermediate (WTI) for April delivery added 4.13 U.S. dollars, or 4.5 percent, to settle at 95.72 dollars a barrel on the New York Mercantile Exchange. Brent crude for April delivery increased 3.06 dollars, or 3.1 percent, to close at 100.99 dollars a barrel on the London ICE Futures Exchange.

“The marked price increases are due to the sanctions imposed on Russia by the West, which were tightened significantly again at the weekend,” Carsten Fritsch, energy analyst at Commerzbank Research, said Monday in a note.

The United States, together with its European and other allies, issued a joint statement on Saturday saying they would remove some Russian banks from SWIFT, the payment system used for most international financial transactions, in response to Moscow’s ongoing military operations in Ukraine.

The move triggered “growing concerns about disruptions to Russian energy supplies,” said Fritsch.

For the week ending Friday, WTI gained 1.5 percent, while Brent surged 4.7 percent, based on front-month contracts.

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Xinhua