Oil bullish as tension between Ukraine and Russia heats up

The global benchmark, the Brent crude oil is bullish in the London session on Wednesday, as geopolitical tensions in Europe especially and the Middle East raised supply concerns.

Both benchmarks were initially bearish in the Asian session in what was perceived as profit-taking, ahead of updates from the U.S. Federal Reserve and U.S. oil inventory data. Oil prices hit seven-year highs last week on worries that supplies could tighten due to Ukraine-Russia tensions.

U.S. President, Joe Biden stated on Tuesday he would consider personal sanctions on President Vladimir Putin if Russia invades Ukraine, while Western leaders stepped up military preparations and made plans to shield Europe from a potential energy supply shock.