Global oil prices soar over rising Ukraine tensions

Oil prices in the global markets have climbed amid the rising tension between Russia and the West over the crisis in Ukraine.

Oil prices soared on Friday after new US and European Union sanctions on Russia raised fears of a disruption of crude supplies from the world’s second largest oil producer.

Brent North Sea crude for delivery in May climbed 47 cents to stand at USD 106.92 per barrel.

New York’s main contract, West Texas Intermediate (WTI), for April delivery grew 56 cents to reach USD 99.46 a barrel.

Traders are worried about a supply disruption from Russia in the wake of the US imposition of sanctions on a key figure in Russia’s oil and gas industry in reaction to Crimea’s secession from Ukraine.

The US sanctions took aim at Gennady Timchenko, a Geneva-based billionaire who handles much of Russia’s oil and gas exports.

Russia is the world’s second largest oil producer. In 2012, it earned USD 160 billion from exporting crude oil, fuel as well as industrial feedstock to the US and Europe.

The US sanctions apply to 11 individuals, including two top advisers to Russian President Vladimir Putin, as well as to ousted Ukrainian president Viktor Yanukovych.

The sanctions came in reaction to the Sunday vote in the Black Sea peninsula, in which 96.8 percent of the participants in a referendum voted to rejoin Russia.

On Friday, the EU reportedly expanded its sanctions against Russian officials, targeting 12 more individuals in its new list.

The EU’s new sanctions will hit the inner circle of Russian President Vladimir Putin, including the Deputy Prime Minister Dmitry Rogozin, two of his aids and nine others.

Russian President Vladimir Putin, on Friday, signed into law the documents officially making Crimea part of the Russian territory.