Oil prices rose more than 2% today after Russian President Vladimir Putin declared partial military action, escalating the war in Ukraine and raising concerns about oil and gas supply cuts.
Brent rose $2.28, or 2.5%, to $92.90 a barrel at 10.07 a.m. after dropping $1.38 yesterday.
Putin said he signed a decree for partial mobilization, which begins today, noting that it is defending Russian territory and that the West wants to destroy Russia.
Uncertainty is growing over supplies from Russia
Escalation will lead in increased uncertainty about energy supplies from Russiaia, said ING’s chief commodities analyst. “This move could lead to calls for more aggressive action against Russia in terms of Western sanctions,” he added.
The EU embargo on imports of Russian crude, which is transported by ship, will come into effect on December 5.
With information from Reuters
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