Crude oil price scales $90 mark, first time since 2014

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Military tension on the Ukraine, Russia border has driven the price of crude oil to over $90 per barrel, a figure which is the highest attained by the commodity for the first time since 2014.

Brent oil on Wednesday surpassed $90 per barrel to strike the highest level for more than seven years, rattled by tensions on the Ukraine-Russia supply concerns in the Middle East.

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European benchmark Brent North Sea crude rallied as high as $90.42 in afternoon London trade, attaining a level last seen in October 2014.

The contract later stood at $90.23, up 2.3 percent from Tuesday.

“This has been coming for a while and even over the last week when prices were easing a little, there was little hope that it would lead to any kind of significant pullback,” OANDA analyst Craig Erlam told AFP.

“With the price now above $90 and gathering momentum once more, it may just be a matter of time until it’s flirting with $100.

“The fundamentals (of supply and demand) remain bullish for oil prices and the prospect of a Russian invasion of Ukraine will only increase the risk premium.”

AFP

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