Oil Price Up To $105 As Russia Invades Ukraine

After news that Russia has invaded Ukraine, energy stocks are expected to rise, while larger equities are expected to fall. Worldwide equity markets are down 3% to 5%, while U.S. shares are projected to open lower by more than 2%. Global risk assets are falling. The value of risk and inflation hedges such as oil, gold, the dollar, and Treasurys is rising continuously.

After Russia’s attack on Ukraine increased concern about global energy supply shortages, oil prices soared on Thursday, with Brent hitting $105 per barrel for the first time since 2014.

“If sanctions affect payment transactions, Russian banks and possibly also the insurance that covers Russian oil and gas deliveries, supply outages cannot be excluded,” said Carsten Fritsch, a Commerzbank analyst.

Natural gas stocks are up nearly 7%, trading at $4.95 as crude oil prices continue to rise. Weekly inventory data is likely to indicate a draw of 126 bcf. 

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