Brent has reached a new seven-and-half-year high of $99 per barrel while WTI has climbed to $95 per barrel. Strategists at Commerzbank expect oil prices to reach the $100 level sooner rather than later.

Oil prices targeting $100 mark

 “Russian President Putin signed a decree recognising the independence of the two Eastern Ukrainian provinces of Donetsk and Luhansk. This constitutes a noticeable escalation of the conflict and is likely to see the West respond by imposing tough sanctions on Russia. It also raises the risk of disruptions to Russian oil and gas shipments.”

“Additional oil from OPEC+ cannot be counted on either, at least for the time being. Following the lead of Saudi Arabia and the United Arab Emirates, Iraq has also rejected calls for a more pronounced expansion of oil production by OPEC+. Moreover, OPEC+ does not want to see commercial stocks increase, he said. It is therefore only a question of time before the $100 mark is reached.”