Oil hits 7-yr highs as market fears Russian attack on Ukraine imminent

NEW YORK, 4 (Reuters) – Oil prices surged over 2% on Monday to their highest in more than seven years as Ukraine’s president declared a “day of unity” for Feb. 16, a date that some Western media have cited as a possible start of a Russian invasion.

Russia is one of the world’s largest oil and gas producers, and fears that it could invade Ukraine have driven the rally in oil closer to $100 per barrel, a level not seen since 2014.

“The market remains hyper-sensitive to the developments over the Russian/Ukraine situation,” said John Kilduff, partner at Again Capital in New York. “This is now intensifying to a terrific degree. Right now, it’s buy now, ask later.”

Brent crude rose $2.04, or 2.2%, to settle at $96.48 a barrel, after touching its highest since September 2014 at $96.78.