WTI leaps 7% towards the $99 mark on Russia-SWIFT ban, nuclear threats

• WTI price explodes at the start of a fresh week, as Russia-Ukraine concerns dominate.
• The West banks Russian banks from SWIFT payments while Moscow threatens nuclear deterrence.
• Geopolitics will continue to drive the oil price action in the coming sessions.

WTI (NYMEX futures) has shot through the roof, in a massive bullish opening gap on Monday, as tensions between Russia and Ukraine heighten after the West banned Russian central banks from the SWIFT payment.

This comes after Russia invaded Ukraine last Thursday, triggering full-blown military warfare between both countries. Amidst escalating Russia-Ukraine tensions, the Russian President Vladimir Putin ordered “the minister of defense and the chief of the general staff [of the Russian armed forces] to transfer the deterrence forces of the Russian army to a special mode of combat duty,” per The Guardian.

Investors fear that the Russia-Ukraine war could disrupt the global oil supplies, leading to an oil market imbalance. Therefore, the black gold is on a run higher in anticipation of the tightening global supplies.

As of writing, WTI is adding 5.57% on the day, trading at $97.06, quickly retracing from daily highs of $98.68.

All eyes will remain on the incoming headlines on the Ukraine turmoil, which will significantly impact the market sentiment and oil prices as well. The weekly US crude oil stocks change data will offer little incentive to traders this week.

Read: Russian talk of nuclear weapons, West's SWIFT sanctions to trigger panic, then create opportunities