Hong Kong: West Texas Intermediate crude surged more than five percent in early trade on Monday as traders grew increasingly worried about an energy crisis after Western nations imposed fresh sanctions on Moscow over its Ukraine operation.
The contract rose 5.07 percent to $96.23, while Brent crude was up 4.30 percent at $102.14.
“Removing some Russian banks from SWIFT could result in a disruption of oil supplies as buyers and sellers try to figure out how to navigate the new rules,” Andy Lipow, of Lipow Oil Associates in Houston, Texas, noted.
Traders will be closely watching a meeting this week of OPEC and other major producers led by Russia, where they will discuss plans for further output.
The group has agreed previously to increase production gradually each month, but the Ukraine crisis could throw those plans into disarray.
