Oil broke $90 for first time since 2014, could reach $100 this year

Wednesday, Oil went over $90 before coming down, the first time since 2014 on tensions between the U.S. and Russia.

Per the Dailymail “Russia has amassed thousands of troops on Ukraine’s border, fanning fears of an invasion. Energy market prices rose on worries that Russia’s gas supply to Europe could be interrupted. Russia is also one of the world’s largest oil exporters. U.S. Secretary of State Tony Blinken said the United States will make sure global energy supplies are not interrupted if Russia takes action.”

Paul Sheldon, a geopolitical advisor said “Markets are nervous that physical supply could be disrupted. Most likely, flows will continue, but the risks are not negligible that something could affect physical balances.”

Meanwhile Barron’s writes “Talk of $100-a-barrel oil has intensified in recent days, but triple-digit prices may pose a disadvantage for major oil-producing nations that are set to meet next week to decide the best course of action on production levels.”

Bob Ryan, chief commodity and energy strategist at BCA Research said “It isn’t in OPEC+’s best interest to see prices go through $90 [a barrel] this year and move higher.”

“The potential for demand destruction is high at these levels, especially if the [U.S. dollar] remains strong,” he added.

Bill Fitzpatrick, managing director and portfolio manager at Logan Capital said oil prices at $100 are a “distinct possibility this year, driven by both strong demand and minimal gains on the supply side.”