Oil prices jump, while Russia-Ukraine war intensifies

Brent oil reaches the highest level since 2008, with $140 a barrel.

The surge followed increased tensions between Russia and Ukraine, with the two sides blaming each other for the war, as well as Libya announcing it closed two of the country’s main oilfields, dropping its output by 330,000 barrels.

US crude oil now costs $124.74 a barrel, which translates into an average price for a gallon of regular petrol around $4, highest since 2008.

On Wall Street, US stocks declined considerably. Europe follows this dropping trend as well.

Figures are devastating for Japan, a nation that imports almost all of its energy. Markets in Hong Kong, South Korea, Australia and Shanghai also reported considerable decrease.

The Ukraine-Russia conflict will continue to dominate market sentiments and no signs of conflict resolution thus far may likely put a cap on risk sentiments into the new week.

“It should be clear by now that economic sanctions will not deter any aggression from the Russians, but will serve more as a punitive measure at the expense of implication on global economic growth. Elevated oil prices may pose a threat to firms’ margins and consumer spending outlook,” commented Yeap Jun Rong, market strategist at IG, based in Singapore.

Despite Russian invasion triggering high inflation across the countries of the world, the West is committed to further apply sanctions on Kremlin. As Nancy Pelosi recently announced, the White House aims to further isolate Russia, including banning imports for oil and energy products.

 

Source: aljazeera.com