Oil Prices Move Higher Following Sanctions Against Russia

Oil prices moved higher in Monday’s action after the United States and the west imposed actions on specific Russia banks, prompting fears that energy supplies will be impacted. West Texas crude traded above $99 a barrel in Monday’s action, a jump of more than 7%. While prices eased slightly late Monday,  West Texas still closed the day up by roughly 4.5%. Bob McNally, with Rapidan Energy Group, told CNBC he’s confident oil prices will go higher, before they start to move lower.

"I think we haven’t yet see the Russian retaliation.  President Putin has options to disrupt the relatively small amount of crude oil that goes through Ukraine, about 250,000 barrels per day, or in response to these very tough sanctions now on the Central Bank and Swift front, he could retaliate even by limiting or restricting exports.  I know that’s something that concerns people in Washington and Brussels.”

That jump in oil prices already being felt not only across the Pacific Northwest, but across the country. More and more gasoline stations in southern California are charging over $6 per gallon for unleaded.

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