Progress in Eastern Europe intensifies energy supply concerns Crude oil closed sharply higher, and oil hit a new high in more than seven years

News on February 23, the tension between Russia and Ukraine has risen, intensifying concerns about the outlook for energy supply, crude oil futures and natural gas prices have risen sharply, and Brent crude oil has reached the highest level
since 2014.

Brent, the international benchmark, rose $1.
45, or 1.
5 percent, to $96.
84 a barrel on ICE in April, after reaching a high of $99.
50 a barrel at one point
.
According to Dow Jones market data, the price of the front-month contract hit its highest point
since September 29, 2014.
West Texas Intermediate crude for March delivery rose $1.
28, or 1.
4 percent
, to $92.
35 a barrel.
The April contract rose $1.
70, or 1.
9%, to $91.
91
.

Natural gas prices rose 1.
5 percent, or 7 cents
, to $4.
498 per million British thermal units in March.
Gasoline rose 1.
5 percent to $2.
711 a gallon in March, and heating oil rose 1.
3 percent to $2.
819 a gallon in March
.

In his speech on Monday, Russian President Vladimir Putin said he recognized the independence of pro-Moscow forces in Ukraine's Luhansk and Donetsk and ordered troops to enter both regions
.

Troy Vincent, senior market analyst at DTN, said: "The market has definitely priced in the oil and gas supply risks
associated with Russia to some extent.
" However, there was a relatively modest increase in prices, stressing that "the market is not taking seriously the threat of sanctions or disruption of Russian oil and gas supplies due to war," he said
.

"With rising energy prices already putting pressure on the global and European economies, tough sanctions on Russian oil and gas will be devastating for both Europe and Russia
," Vincent said.

According to 2020 data from the U.
S
.
Energy Information Administration, Russia is the world's third-largest oil producer and second-largest producer of dry natural gas.

The hostility simmering around Ukraine quickly drew international condemnation, and the White House issued an executive order restricting investment and trade
in the region.
On Tuesday, US President Joe Biden said that the United States would sanction two Russian banks as well as the country's sovereign debt, accusing Moscow of starting its invasion of Ukraine
.

Meanwhile, EU officials called Putin's recent actions and statements a "flagrant violation of international law.
"

Russia is a major gas supplier to Western Europe, and the intensification of the conflict in Eastern Europe may affect gas prices
.
Energy analysts say Europe's reliance on Russian gas limits Europe's ability to
sanction Moscow if it invades Ukraine.

Some analysts have warned that crude oil prices could break above $
100 a barrel if tensions in Ukraine turn into a full-scale war.