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Brent crude rises $ 10 and stocks fall as Ukraine’s conflict deepens | Jobs

Tokyo (AP) — As the conflict in Ukraine intensified amid rising demands for stricter sanctions on Russia, oil prices soared by more than $ 10 a barrel on Monday and stock prices fell sharply.

Brent crude soared over $ 10 at the beginning of Monday. Benchmark US crude rose nearly $ 9 above $ 124 a barrel.

The surge followed a warning from Russian President Vladimir Putin that the Ukrainian state was at stake as Russian troops attacked strategic locations. Temporary ceasefires in two Ukrainian cities failed over the weekend — and both blamed each other.

Oil prices were further pressured after Libya’s state-owned oil company said armed groups had closed two important oil fields. This move has reduced the country’s daily oil production by 330,000.

Meanwhile, US House Speaker Nancy Pelosi said he is considering legislation to further isolate Russia from the global economy, including a ban on the import of oil and energy products into the United States.

By midnight in Tokyo, US crude had jumped from $ 9.08 a barrel to $ 124.74 in electronic trading on the New York Mercantile Exchange. In July 2008, when the price per barrel of US crude oil rose to $ 145.29, it hit a record high.

As a result, the average price of gasoline in the United States has exceeded $ 4 per gallon, and the milestone has already been achieved again. According to the AAA Motor Club, regular gasoline prices have risen almost 41 cents, surpassing an average of $ 4 / gallon (3.8 liters) nationwide on Sunday for the first time since 2008.

The highest ever average gasoline price was set at $ 4.10 per gallon on July 17, 2008.

Brent crude, the international price standard, reached $ 139.13 a barrel before it fell on Monday. It was $ 128.67 a barrel, up $ 10.56.

On Wall Street, US futures fell, Benchmark S & P 500 contracts fell 1.6%, and Dow Jones Industrial Average contracts fell 1.3%. European stock futures have also fallen.

Soaring fuel costs are devastating for Japan, which imports almost all energy. Japan’s benchmark Nikkei 225 fell 3.5% in the morning trading to 25,091.93.

Hong Kong’s Hang Seng Index fell 4.0% to 21,021.38, and South Korea’s Kospi fell 2.5% to 2,648.48. Australia’s S & P / ASX 200 fell 1.2% to 7,023.10. On the other hand, Shanghai Composite fell by nearly 0.8% to 3,421.81.

Yeap Jun Rong, IG’s market strategist in Singapore, said:

“Economic sanctions do not stop attacks from Russians, but it should now be clear that they serve as a more disciplinary measure at the expense of their impact on the growth of the world economy. Soaring prices can threaten a company’s profit margins and outlook for personal consumption. “

Recently, markets around the world have been fiercely worried that Russia’s invasion could ignite the already high inflation in the world with high prices for oil, wheat and other commodities produced in the region. It’s shaking.

According to Ukrainian officials, Russian troops intensified bombardment of cities in central Ukraine, north and south, as a second attempt to evacuate civilians collapsed. Russia has made great strides in southern Ukraine and its coasts, but much of its efforts have been stalled, including the huge military convoys in northern Kyiv.

Companies such as Mastercard, visas and Netflix have withdrawn from Russia. The conflict in Ukraine also threatens the food supply in some regions such as Europe, Africa and Asia, which rely on the vast and fertile farmlands of the Black Sea region known as the “Breadbasket of the World”.

Wall Street ended last week with a fall in stock prices, despite reports of much stronger US employment than economists expected. The S & P 500 fell 0.8% to 4,328.87, marking its third weekly loss in the last four weeks. It is currently down a little less than 10% from the record set earlier this year.

The Dow initially fell by more than 500 points. It closed 0.5% lower at 33,614.80. Nasdaq was down 1.7% to 13,313.44. The Russell 2000 Index for SMEs fell 1.6% to 2,000.90.

In currency transactions, the US dollar rose from 114.86 yen to 114.93 yen. The euro fell from $ 1.0926 to $ 1.0846.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Brent crude rises $ 10 and stocks fall as Ukraine’s conflict deepens | Jobs

Source link Brent crude rises $ 10 and stocks fall as Ukraine’s conflict deepens | Jobs

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