Oil price may hit $100 per barrel today

Today could be the day after seven years, that oil price could finally hit the $100 per barrel threshold as the tension between Russia and Ukraine escalates, disrupting supply.

As at 10.47 am on Tuesday, data from Reuters showed brent crude, the benchmark for Nigeria’s oil was at $99.36, the highest since August 1, 2014.

While U.S. West Texas Intermediate (WTI) crude futures is at $95.86 per barrel.

The latest price was above the oil benchmark of $62/barrel in Nigeria’s 2022 budget.

The development cane after Moscow ordered troops into two breakaway regions in eastern Ukraine.

In a television address, Mr Putin described Ukraine as an integral part of Russia’s history and said eastern Ukraine was ancient Russian lands and that he was confident that the Russian people would support his decision.

He announced his decision in phone calls to the leaders of Germany and France, who voiced disappointment, the Kremlin said, and was later shown on state television signing the decree.

“I deem it necessary to make a decision that should have been made a long time ago – to immediately recognise the independence and sovereignty of the Donetsk People’s Republic and the Luhansk People’s Republic,” Mr Putin said.

He also said that “if Ukraine was to join NATO, it would serve as a direct threat to the security of Russia.”

Read also: Subsidy to hit N9bn daily, as oil price crosses $96, bringing more pains than joy

The European Union has been spitting fire, just as the United States said that it would consider sanctions against Russia.

Russia is one of the major oil producers and also energy consumers, the talk on sanctions could signal more bullish moves for oil prices in the coming days.

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