Crude oil prices rose by more than $2 a barrel on Monday as tensions mounted amid Russian military intervention on the Crimean peninsula.
The U.N. Security Council announced it will hold its third emergency meeting on the Ukraine crisis on Monday, this time at Russia's request, as Moscow tightens its hold on Crimea, diplomats said. Russia is one of the world's biggest oil producers, and while analysts said it was unlikely Russian oil supplies would be disrupted by the Ukraine crisis, global oil prices rose as investors pulled out of riskier assets like stocks.
The stand-off in Crimea raised concerns over disruptions of Russian natural gas supplies to Europe, which would see a rise in demand for alternative fuels such as heating oil. The European Union gets roughly a quarter of its gas supply from Russia, about half of which is piped through Ukraine.
Brent crude hit a session peak above $112 per barrel, its highest since Dec. 31, and last traded up nearly $2 near $111. U.S. crude futures jumped by $2.33 to settle at $104.92 a barrel, the highest since Sept. 23.
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