Read more about Surge in oil price rattles markets as Ukraine conflict intensifies on Business Standard. Oil prices soared again as the Ukraine war triggered a dash for commodities that could be in short supply, while stock markets slipped
soared again on Thursday as the Ukraine war triggered a dash for commodities that could be in short supply, while stock slipped as investors worried about higher inflation and slowing economic growth. Brent crude oil rose more than 5% to within a whisker of $120 per barrel before settling at $114. That still leaves it up nearly 20% since last Thursday, while everything from coal to natural gas and aluminium are surging as Western nations tighten sanctions on Russia following its invasion of Ukraine. Russia calls its actions a « special operation ». « Russia supplies around 30% of Europe’s gas and oil imports and accounts for around 11% of world oil production, » said Shane Oliver, head of investment strategy at fund manager AMP. « In short, investors are worried about a stagflationary shock. » MSCI added to Russia’s financial isolation by deciding to shut the country out of its emerging index, while FTSE Russell said Russia would be removed from all its indices.
