Why are oil prices moving up again this week?

Once again it is the Ukraine Russia conflict at play. On Monday, the oil prices once again hardened in early trades to scale above the $95/bbl as jitters over potential conflict between Russia and Ukraine heightened. However, in mid-day trades, the price of Brent crude had once again tapered to around the $93/bbl levels. However, the undertone of oil prices continues to be very hawkish and no immediate respite looks likely.

To worsen matters, the US and the EU have also warned Russia of sanctions if it invaded Ukraine. The EU President has gone to the extent of stating that Russia would be cut off from international financial markets and even denied access to key exports that are essential to modernise its economy. It is, however, feared that if Russia actually invades Ukraine, then Brent Crude would easily spike beyond $100/bbl mark and that looks likely.