Oil jumps over $ 2 as Ukraine mobilises for war, WTI at five-month top

Tuesday, 4 March 2014 01:16 - - {{hitsCtrl.values.hits}}

REUTERS: Brent and US crude oil rallied more than $ 2 per barrel to multi-month highs on Monday, lifted by rising tension in Ukraine after Russian President Vladimir Putin declared he had the right to invade his neighbour. Russia is the world’s biggest oil producer and Ukrainian Prime Minister Arseny Yatseniuk said Moscow’s move to use military force was a “declaration of war”. Putin secured permission from his parliament on Saturday to use military force to protect Russian citizens in Ukraine and told US President Barack Obama he had the right to defend Russian interests and nationals, spurning Western pleas not to intervene. Brent crude hit a session peak of $ 111.24 per barrel, its highest since 2 January, and was up $ 1.48 at $ 110.55 by 0208 GMT. US crude futures jumped as much as $ 2.06 to $ 104.65 a barrel, the highest since 23 September. They were later up $ 1.20 at $ 103.80. “Oil markets are reacting on the potential that the situation could worsen,” said Ben Le Brun, a Market Analyst at OptionsXpress in Sydney. “We don’t see any fundamental impact on oil markets yet, and it is still very much sentiment driven.” “But I definitely suspect oil will move much higher, if it actually comes to war. US crude could weasily surpass $ 110 and a $ 120 target is not out of the question,” said Le Brun.

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