WTI hovers around $92.50 amid UN emergency meeting on Russia-Ukraine

• WTI turns volatile but set to move higher on the expectations of cuts in global oil supply.
• The emergency meeting by the UN has spurted uncertainty in the market.
• The US is set to impose sanctions on Russia after coordinating with allies on Tuesday.

West Texas Intermediate (WTI), futures on NYMEX, is holding above $92.00 in the Asian session, as the tensions between Russia and Ukraine escalates. The statement from the United Nations (UN) Security Council that ‘risk of major conflict is real and needs to be prevented at all costs' has cleared the obscurity over Russia’s plan to invade Ukraine. The major agenda behind calling for an emergency meeting by the UN is to discuss the Russian government’s labeling for two regions in eastern Ukraine ‘independent’.

Earlier, Russian leader Vladimir Putin recognized two separatist regions in eastern Ukraine, Donetsk and Luhansk, as ‘independent’.  Moreover, Russia is supported by separatist leaders to build up military bases in these regions.

The news has created havoc in the Asian markets. Crude oil has turned volatile, hovering around $92.60 but is likely to resume moving higher soon as sanctions from various Western leaders are on the cards.  Imposing sanctions on Russia by the Western leaders may dampen the already vulnerable oil market further. The tightening of the oil supply will affect the global operating activities. Adding to that, a senior White House official said in a statement, the US will announce sanctions against Russia on Tuesday in response to Moscow's actions on Monday.

Meanwhile, the US dollar index (DXY) has surpassed 96.00 as the risk-aversion theme has underpinned the greenback's safe-haven appeal.