Oil prices rose amid tensions with Ukraine

Oil and gold led the commodity rally that started after Russian President Vladimir Putin announced that Russia would recognize the two separatist regions and would send "peace forces" to the region.

West Texas Oil, which was not traded on Monday due to a holiday in the USA, rose 3 percent compared to Friday, while gold hit an 8-month high. Details on when and how many Russian soldiers will enter the region after the recognition decision are not known, but Moscow has previously claimed that a significant number of soldiers from the Ukrainian army have been sent to the conflict line with the separatists in the Donetsk and Luhansk regions.

The escalating conflict has the potential to destabilize raw materials markets, with responses from the US and Europe.

Russia is one of the leading players in oil, natural gas and aluminum production. In addition, both countries are wheat growers, along with Ukraine. Russian aluminum company United Co. Rusal International PJSC dropped 20 percent in the Hong Kong market due to possible sanctions concerns.

The tension over Ukraine is experienced at a time when the steadily increasing oil demand cannot be met by the producing countries and the stocks are depleted due to the rapidly rising oil. However, the nuclear agreement negotiations with Iran, which are expected to increase the number of barrels to be released, have still not been concluded.

"The market will remain on the cutting edge for the next few months," said Sri Paravaikkarasu, Director of FGE Asia Oil.

West Texas Oil for April delivery rose 2.8 percent from Friday to $92.71 on the Nymex market.

Brent oil for April delivery rose 1.3 percent to $96.67 on the London ICE Futures Europe market.