Oil nears US$ 100 as West prepares for Russian sanctions

REUTERS: Oil prices surged close to US$ 100 per barrel yesterday as major crude producer Russia prepared to send troops into two breakaway regions of Ukraine, sparking Western nations to ready economic sanctions against Moscow.

After heavy falls at the open, European stocks edged into positive territory, as the Kremlin said it remained open to all diplomatic contact over Ukraine.
Asian stock markets had earlier ended their sessions with heavy falls.

Brent North Sea crude oil reached US$ 99.50 per barrel, the highest level in seven years.
At around 1115 GMT, it pulled back to just below US$ 98, still a gain of around 2.5 percent compared with late Monday.

“The intensifying crisis between Russia and Ukraine has raised concerns about the supply disruptions that would ensue as sanctions look set to cripple Russia, the world’s second largest oil exporter and the world’s top natural gas producer,” noted Victoria Scholar, head of investment at Interactive Investor.