Brent Crude prices reached $99 per barrel before falling back to $96 per barrel in morning trading, as Russian troops were ordered into Ukraine.
The invasion has triggered the suspension of the Nord Stream 2 pipeline from Russia to Germany by the German government, and comes at a moment in which markets are tight.
“Supply misses are rising. Market recognition of strained capacity is also growing,” JP Morgan told Reuters. “We believe this should drive a higher risk premium … circa $125 a barrel as early as 2Q 2022 and $150 a barrel in 2023.”
The upward drift of energy prices has been a major source of unpopularity for the Biden administration, with gasoline prices rising 40% year-over-year in January, according to the US Bureau of Labor Statistics. .