Crude Oil Prices Breach $110 to Hit Highest Level Since 2013

U.S. oil prices breached $110 a barrel on Wednesday for the first time since 2013 as commodity markets continued to be roiled by the Russian invasion of Ukraine.

Front month futures for West Texas Intermediate crude were up more than 5% to near $109, after topping $110 in earlier trading. WTI began the year around $76 and has climbed some 19% since Russia began its full-scale attack on Ukraine last Thursday.

Russia is a major producer of crude and any disruptions to its ability to supply markets risks pushing the price of the commodity higher. Tough financial sanctions look to already be wreaking havoc on supply chains.

“Surging oil prices overnight sparked global growth fears as the Ukraine-Russia situation intensified and oil supply chains were thrown into chaos over sanctions,” said Jeffrey Halley, an analyst at broker Oanda.

Already, the plan from the U.S. and allies to exclude Russia from Swift, a ubiquitous global payments network, has complicated commodity transactions.

Moreover, analysts noted that traders may be refusing to touch Russian oil to avoid the risk of breaching sanctions, even as widespread embargoes on crude from Russia have not materialized.

“The underlying theme is that even if one could theoretically buy Russian oil and gas without breaking sanctions, no one wants to take the risk and won’t touch them,” Halley said.