Crude Oil Prices Rally On Russia Action, Brent Hits $99.50, Highest Since Sept 2014

Crude oil prices surged on Thursday, after reports that Russian President Vladimir Putin had announced military action against Ukraine.

Brent crude was up $1.48, or 1.5%, to $98.32 a barrel, after hitting $99.50, the highest since September 2014.

Russia is the largest exporter of oil and gas in the world and escalation of tensions in Russia and Ukraine could lead to oil prices staying higher for longer.

India tends to get hit badly by higher crude oil prices, as the nation imports 70% of its crude requirements. Higher crude prices would mean that it would feed into inflation in India, rasing the prospects of higher interest rates.

Natural gas prices also jumped almost 3%, following the reports. Russia is the biggest gas exporter in the world, wit significant amounts being consumed by Europe.