Muscat – Oil prices surged close to US$100 per barrel on Tuesday as major crude producer Russia prepared to send troops into two breakaway regions of Ukraine, sparking Western nations to ready economic sanctions against Moscow.

The rise in oil prices is because of the tension on the Ukrainian-Russian border. Russia’s oil and gas sector is affected by this ever-growing tension,

The intensifying crisis between Russia and Ukraine has raised concerns about the supply disruptions that would ensue as sanctions look set to cripple Russia, the world’s second largest oil exporter and the world’s top natural gas producer.

Brent North Sea crude oil reached US$99.50 per barrel, the highest level in seven years. At around 3pm, it pulled back to just below US$98, still a gain of around 2.5 per cent compared with late Monday.