Oil nears $100 on rising fears energy supply will take a hit

New Delhi: Oil prices touched $99.5 a barrel on Tuesday as Russia ordered troops into separatist regions of Ukraine, increasing the fears of a full-scale war and energy supply disruptions.

Oil prices traded between $96.5 and $99.5 a barrel on Tuesday as a nervous market speculated over the implications of the escalation on energy supply in a market already reeling from the demand-supply mismatch. Russia is one of the biggest exporters of oil and gas, and a war and consequent western sanctions can trigger a major imbalance in the energy market. High prices will push up India’s import bill, which has already doubled in a year to $82 billion for the nine months through December. Pump prices have, however, remained unchanged for about 110 days but are expected to rise sharply next month after the state elections.