Oil hits $100 on Ukraine attacks.

 Oil hits $100 on Ukraine attacks.

Oil prices have surged to $100 per barrel as tensions between Ukraine and Russia continue to escalate. The recent attacks on Ukrainian military vessels by Russian forces in the Black Sea have caused a ripple effect in the global oil market, with investors fearing a disruption in supply.

The conflict between Ukraine and Russia has been ongoing since 2014, when Russia annexed Crimea from Ukraine. The recent attacks on Ukrainian vessels near the Kerch Strait, which connects the Black Sea to the Sea of Azov, have raised concerns about the safety of oil shipments passing through the region.

The Kerch Strait is a crucial shipping route for oil and gas exports from Russia, which is the world’s largest oil producer. Any disruption in the flow of oil through this region could have a significant impact on global oil prices.

The rise in oil prices has also been fueled by the decision of OPEC and its allies to cut production by 1.2 million barrels per day from January 2019. This move was aimed at stabilizing oil prices, which had been fluctuating due to oversupply in the market.

However, the recent attacks on Ukraine have added a new dimension to the oil market, with investors now factoring in the possibility of supply disruptions. The rise in oil prices is likely to continue as long as the conflict between Ukraine and Russia remains unresolved.

The impact of higher oil prices will be felt across the global economy, with consumers likely to face higher prices for gasoline and other petroleum products. This could lead to inflationary pressures, which could in turn affect economic growth.

In conclusion, the recent attacks on Ukrainian vessels by Russian forces have caused oil prices to surge to $100 per barrel. The conflict between Ukraine and Russia has raised concerns about the safety of oil shipments passing through the Kerch Strait, which is a crucial shipping route for oil and gas exports from Russia. The rise in oil prices is likely to continue as long as the conflict remains unresolved, and could have a significant impact on the global economy.