Oil spiked following a televised address by Russian President Vladimir Putin, which revealed the Russian leader’s next move regarding Ukraine.
In the speech, Putin recognized the self-proclaimed separatist republics that Russia backs in eastern Ukraine, Bloomberg highlighted, adding that this action intensified a standoff with the West.
Following the address, the price of Brent Crude oil was up more than four percent to $97.70 per barrel and the price of West Texas Intermediate (WTI) was up almost four percent to $94.67 per barrel, at the time of writing. This time last year, the price of Brent was in the mid-$65s, while the price of WTI was in the low-$60s.
Natural gas also spiked more than four percent following Putin’s speech to $4.61, at the time of writing. This time last year, the commodity stood at around $2.8.
A White House statement published after Putin’s speech outlined that U.S. President Joe Biden had signed an executive order to respond to Putin’s action.
The executive order prohibits several actions, including new investment in the so-called DNR or LNR regions of Ukraine by a U.S. person, wherever located, and the importation into the U.S., directly or indirectly, of any goods, services, or technology from the so-called DNR or LNR regions of Ukraine.
The White House statement noted that the executive order is distinct from the “swift and severe” economic measures the U.S. is prepared to issue with allies and partners in response to “a further Russian invasion of Ukraine”.
“We are continuing to closely consult with Ukraine and with allies and partners on next steps and urge Russia to immediately deescalate,” the White House stated.
Following Putin’s address, Biden spoke with President Volodymyr Zelenskyy of Ukraine to reaffirm the commitment of the United States to Ukraine’s sovereignty and territorial integrity, a readout of the call on the White House website highlighted.
“President Biden strongly condemned Russian President Putin’s decision to purportedly recognize the ‘independence’ of the so-called DNR and LNR regions of Ukraine,” the readout noted.
“He updated President Zelenskyy on the United States’ response, including our plan to issue sanctions. President Biden reiterated that the United States would respond swiftly and decisively, in lock-step with its allies and partners, to further Russian aggression against Ukraine,” the readout continued.
