(Bloomberg). — The oil markets started the week strongly on indications of continued global demand and tensions over Ukraine. They are on track for their best January performance since at least thirty years.

In early Asian trading, the benchmark global index rose by 1% after six weeks of gains. Prices have risen to their highest levels since 2014. West Texas Intermediate gained $88/barrel after climbing 2% over the past week.

With tens of thousands of Russian troops massed near Ukraine, there’s concern Moscow may order an invasion, potentially upending energy flows. According to Pentagon, Moscow increased troop levels over the weekend. The crisis will be debated in the United Nations’ Security Council later Monday.

As global markets tightened, crude oil prices have soared. Top banks and oil companies predict that oil will soon surpass $100 per barrel. The advance has been supported as the Organization of Petroleum Exporting Countries and its allies haven’t been able to meet planned supply output increases in full in recent months. Wednesday’s market assessment meeting will be held by the OPEC+ Alliance.

The global recovery from the effects of the coronavirus epidemic continues, and product markets continue to boom, even gasoline. Global refiners are reaping strong profits and the outlook for gasoline demand is encouraging.

In backwardation the global oil markets are experiencing bullish patterns in which short-term contracts have a premium over longer term ones. The spread between Brent’s two nearest December contracts was $5.88 a barrel in backwardation, up from $4.12 a barrel at the start of the month.

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