Global oil prices have continued to grow due to the escalation of tensions between Russia and the West over Ukraine, with the price of Brent crude topping $99 per barrel for the first time since September 2014.
As of 08:36 GMT, the price of April futures for Brent crude was up 4.05 percent, while April futures for West Texas Intermediate were trading up 4.66 percent at $94.44 per barrel.
The development comes amid growing tensions between Russian and the West over Ukraine. On Monday, Russian President Vladimir Putin recognised the independence of of the Donetsk People's Republic (LPR) and the Lugansk People's Republic (LPR), a move that caused condemnation from the United States and Ukrainian authorities.
Russia's decision to recognise DPR and LPR followed requests by the leaders of the breakaway republics, who accused Ukraine of attacking their territories, thereby forcing DPR and LPR to begin the evacuation of civilians (women and children) to Russia. Kiev, for its part, has claimed that it was not responsible for the attacks.
President Putin said that Moscow would send Russian troops on a peacekeeping mission to the two republics. The US envoy to the United Nations described the statement as "nonsense", while Ukrainian President Volodymyr Zelensky said Kiev was not afraid of the move. "We are on our own land. We owe nothing to anyone. And we will not give anything to anyone", he said.
Oil prices have been growing for several months amid statements by the US and its allies about Russia planning an "invasion" of Ukraine, a claim the Kremlin has rejected as absurd and false.
Maike Currie, an investment director at Fidelity International, said oil could go above $100 per barrel due to a combination of factors – the ongoing standoff over Ukraine, cold winter in the United States, as well as a lack of investment in oil and gas supplies around the world.
Market experts fear that the ongoing standoff may trigger disruptions to oil supply. Potential sanctions imposed on Russia is another factor leading to increased prices. The United Kingdom pledged to introduce a "significant package of sanctions" in response to Russia's decision to recognise LPR and DPR. The United States too has announced such a move.
The European Union's foreign policy chief, Josep Borrell, said the bloc will discuss punitive measures against Russia during a meeting of foreign ministers on Tuesday.