Oil prices have continued to soar as signs of extended global demand growth have continued while tensions in Ukraine sprout fears of an energy flow upset.
The price for Brent crude futures rose over $90 last week for the first time in years. The price has risen as fears increased over a Russian invasion of Ukraine. Thousands of Russian troops have been massing at the country’s border, with Moscow further boosting its troop levels over the weekend, Bloomberg reported, citing the US Pentagon.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC+ group, have also not been able to meet planned supply output increases in full in previous months, further constraining supply.
These factors, in combination with demand increases as part of a general COVID-19 recovery, have left some experts arguing that oil could pass the $100 per barrel mark.
The market will be keenly watching the OPEC+ meeting later this week, on Wednesday, as the group meets to assess the market.
