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ERBIL, Kurdistan Region - The price of a barrel of Brent crude hit over $110 dollars on Wednesday as the war between Russia and Ukraine escalates on its seventh day.
A barrel of Brent crude oil briefly hit over $112 dollars on Wednesday, the highest it has went since 2014, the price soon came back down to around $110.
The hike in oil prices comes as the Russian invasion of Ukraine entered into its seventh day, and countries across the world have slammed the Russian offensive, imposing strict sanctions on the country, as well as several Russian diplomats and businesses.
Following Russian President Vladimir Putin’s declaration of a “special military operation” on Ukraine last week, Germany on Tuesday halted the Nord Stream 2 Baltic Sea gas pipeline project, Reuters reported.
The gas pipeline, worth 411 billion, was designed to double the flow of Russian gas to Germany.
The US soon joined in and imposed sanctions on Nord Stream 2 AG Company and its CEO, who are in charge of building the pipeline.
As sanctions continue to be imposed on the world’s largest natural gas exporter, and Moscow continues its offensive, oil prices are also expected to hike.
The sanctions being implemented on Moscow have also pushed the spotlight on OPEC countries such as Saudi Arabia to see if they will increase production in order to stabilize prices, which the US has been urging them to do.
Saudi Crown Prince Mohammed bin Salman told French President Emmanuel Macron in a phone call on Sunday that Riyadh remains committed to the OPEC+ agreement and alliance, which include Russia.
The next OPEC+ meeting is set to take place on March 2 to decide the production level for April, but no change is expected.
The European Union depends on Russia for 40 percent of its natural gas and so far, there are no sanctions in place on Russian natural gas. In fact, Russian gas is still being pumped into Europe via Ukraine.
A barrel of Brent crude oil briefly hit over $112 dollars on Wednesday, the highest it has went since 2014, the price soon came back down to around $110.
The hike in oil prices comes as the Russian invasion of Ukraine entered into its seventh day, and countries across the world have slammed the Russian offensive, imposing strict sanctions on the country, as well as several Russian diplomats and businesses.
Following Russian President Vladimir Putin’s declaration of a “special military operation” on Ukraine last week, Germany on Tuesday halted the Nord Stream 2 Baltic Sea gas pipeline project, Reuters reported.
The gas pipeline, worth 411 billion, was designed to double the flow of Russian gas to Germany.
The US soon joined in and imposed sanctions on Nord Stream 2 AG Company and its CEO, who are in charge of building the pipeline.
As sanctions continue to be imposed on the world’s largest natural gas exporter, and Moscow continues its offensive, oil prices are also expected to hike.
The sanctions being implemented on Moscow have also pushed the spotlight on OPEC countries such as Saudi Arabia to see if they will increase production in order to stabilize prices, which the US has been urging them to do.
Saudi Crown Prince Mohammed bin Salman told French President Emmanuel Macron in a phone call on Sunday that Riyadh remains committed to the OPEC+ agreement and alliance, which include Russia.
The next OPEC+ meeting is set to take place on March 2 to decide the production level for April, but no change is expected.
The European Union depends on Russia for 40 percent of its natural gas and so far, there are no sanctions in place on Russian natural gas. In fact, Russian gas is still being pumped into Europe via Ukraine.
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