Crude oil prices rose by more than $2 a barrel on Monday as tensions mounted amid Russian military intervention on the Crimean peninsula.
The U.N. Security Council announced it will hold its third emergency meeting on the Ukraine crisis on Monday, this time at Russia’s request, as Moscow tightens its hold on Crimea, diplomats said. Russia is one of the world’s biggest oil producers, and while analysts said it was unlikely Russian oil supplies would be disrupted by the Ukraine crisis, global oil prices rose as investors pulled out of riskier assets like stocks.
The stand-off in Crimea raised concerns over disruptions of Russian natural gas supplies to Europe, which would see a rise in demand for alternative fuels such as heating oil. The European Union gets roughly a quarter of its gas supply from Russia, about half of which is piped through Ukraine.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.