Oil tops $105/bbl after Russia attacks Ukraine

Oil prices jumped, with Brent rising above $105 a barrel for the first time since 2014, after Russia's attack on Ukraine exacerbated concerns about disruptions to global energy supply.

Russia launched an all-out invasion of Ukraine by land, air and sea in the biggest attack by one state against another in Europe since World War Two.

The United States and Europe have promised the toughest sanctions on Russia in response.

"Oil prices are soaring with no end in sight as the news of Russia’s full-scale military incursion of Ukraine, immediately putting at risk up to 1 million bpd (barrels per day) of Russian crude oil exports transitioning through Ukraine and the Black Sea," said Louise Dickson, senior oil market analyst at Rystad Energy.

At least three major buyers of Russian oil were unable to open letters of credit from Western banks to cover purchases on Thursday, sources told Reuters.

Global benchmark Brent crude rose $6.61, or 6.8%, to $103.45 a barrel by 12:47 p.m. ET (1747 GMT), after touching a high of $105.79.

U.S. West Texas Intermediate (WTI) crude jumped $4.78, or 5.2%, to $96.88 a barrel, after earlier rising to $100.54.

Brent and WTI hit their highest since August and July 2014 respectively.

"Russia is the third-largest oil producer and second-largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions," UBS analyst Giovanni Staunovo said.

"Supply concerns may also spur oil stockpiling activity, which supports prices."

Russia is also the largest provider of natural gas to Europe, providing about 35% of its supply.

UK Prime Minister Boris Johnson said Britain and its allies would unleash a massive package of economic sanctions on Russia and that the West must end its reliance on Russian oil and gas.

European Union leaders will impose new sanctions on Russia, freezing its assets, halting its banks' access to European financial markets and hitting "Kremlin interests" over its invasion of Ukraine, senior officials said on Thursday.