This morning, oil prices are hitting highs not seen in over seven years as the situation on the Ukrainian border continues to escalate. Many fear the brewing conflict could severely disrupt supply in the coming weeks. Today crude oil opened at $93.91, diesel at $2.9364, and gasoline at $2.7434.
On Friday afternoon, United States intelligence intercepted a message from Putin suggesting he could launch the invasion of Ukraine as early as this week. While many hoped for a diplomatic solution, the situation’s intensity has grown fast. Due to the intercepted message, President Biden met with both Putin and Ukraine’s Zelensky virtually over the weekend to see if some agreement could be reached, but there hasn’t been any clear progress. With Moscow denying any intention to invade, we could be in for a big surprise this week – in either direction.
Ukraine has also called for a meeting between their Russian aggressors and members of a European security group about navigating this situation. Some analysts suggest a Ukrainian succession is possible this week as Zelensky weighs his region’s severe threat. This weekend top military experts warned how Russia might begin its invasion if they chose to do so. “Aerial bombardments” followed by a “swift and violent” troop movement throughout the rural parts of the region would take place first before moving into major populated cities such as Kyiv. With the European Union warning of “massive sanctions” if Russia invades Ukraine, the effects could be devastating for prices if the situation continues to progress as it currently stands.