Oil Prices Soar After Russian President Vladimir Putin Alerts Russia's Nuclear Troops

Photo: Antara

JAKARTA - Oil prices jumped more than seven US dollars in early Asian trade since Monday, February 27. The spike came after Russian President Vladimir Putin placed a nuclear deterrent on high alert against Western powers and Japan stepped up sanctions on Russian banks.

28, nuclear wariness and bank payment constraints raised concerns that oil supplies from the world's second-largest producer could be disrupted as Russia builds up a defensive position following its invasion of neighboring Ukraine.

Brent crude futures rose 5.46 dollars, or 5.6 percent, to trade at 103.39 dollars by 2331 GMT, having hit a high of 105.07 dollars a barrel shortly after trading opened. Last week the global benchmark contract hit a more than seven-year high of 105.79 dollars after the invasion began.

US West Texas Intermediate (WTI) crude futures added 5.64 dollars, or 6.2 percent, to trade at 97.23 dollars a barrel, after hitting a high of 99.10 dollars shortly after the open. WTI hit a high of $100.54 a barrel last week.

Putin raised the stakes Sunday, ordering Russia's "deterrence forces" - which use nuclear weapons - to be on high alert, citing aggressive statements by NATO leaders and various economic sanctions imposed on Russia by the West.

"President Putin's decision to put Russia's nuclear forces on high alert is a clear and worrying escalation that can only support oil prices. I think we could have some price booms in the morning," Stephen Brennock of oil broker PVM told Reuters.