Brent crude oil rose to $95 a barrel for the first time since October 2014 amid rising tensions between Russia and Ukraine.
Brent crude futures, the global oil benchmark, climbed 3.9 percent to $95.1 a barrel, while West Texas Intermediate (WTI) crude futures increased 4.4 percent to $93.79.
During a White House briefing, Jake Sullivan, United States national security advisor, said that there were signs of Russian escalation at the Ukraine border and the possibility of an invasion during the Olympics.
“We continue to see signs of Russian escalation, including new forces arriving at the Ukrainian border. As we’ve said before, we are in the window when an invasion could begin at any time,” Sullivan said on Friday.
Sullivan, however, added that the White House did not claim that Russian leader Vladimir Putin has made a final decision on the matter.
Earlier this week, JPMorgan projected that Brent could easily reach $120 per barrel if Russia invaded Ukraine and the US and other nations sanctioned Russia’s oil and natural gas exports.
The US and the United Kingdom have urged their citizens to leave Ukraine over Russian invasion fears.
The rise in global crude oil prices should portend an upturn for Nigeria’s revenue — but subsidy payments shortchanged the government.
In December 2021, subsidy payment gulped N270 billion, amounting to N1.43 trillion in annual expense, shrinking revenue accrued to the federation account. The federal government may pay up to N3 trillion to cater for subsidy in 2022.