Crude oil soars due to the US ban on Russian oil exploitation, Asian stocks wobble According to Reuters

© Reuters. FILE PHOTO: A man looks at a stock market monitor in Taipei January 22, 2008. REUTERS / Nicky Loh

By Andrew Galbraith

SHANGHAI (Reuters) – Prices rebounded on Wednesday as Asian stocks struggled to hold their ground as investors assessed the impact of the worsening conflict in Ukraine and a new U.S. ban on… with Russian oil.

The price of a barrel of crude oil, which surged in January as supply concerns and expectations of a strengthening global economic recovery, have skyrocketed since Russia launched its invasion of Ukraine on May 24. 2. Oil price is now almost double compared to the beginning of December. Low.

Risks that even higher US fuel prices could stifle economic growth, President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation for the invasion. strategy, amid strong support from American voters and lawmakers.

The ban includes US and European sanctions imposed on Moscow for launching the biggest war in Europe since World War Two. Russian air strikes have targeted Ukrainian cities and killed hundreds of civilians.

The UK also announced that it will phase out imports of Russian oil and oil products gradually by the end of 2022.

Stephen Innes, managing partner at SPI Asset Management, said: “The oil shock is intrinsically an accumulation rather than a one-off, and the potential for the market to hit $150 before retracing back to $100. dollars will be easier for investors.”

“The imposition of brute force sanctions without pre-evolving the risks of alternative supply redundancy[will]be much higher.”

The global benchmark Brent oil price last traded at $131.39 a barrel, up 2.66% on the day but still as high as $139.13 on Monday.

US West Texas Intermediate crude was up 2.19% at $126.41 a barrel.

Russia called its actions in Ukraine a “special operation”, and warned earlier this week that prices could rise to $300 a barrel and the country could close the main gas pipeline to Germany. if the West blocks its oil exports.

In equities, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.26%, as a reversal in China shares erased earlier gains.

China’s CSI300 blue-chip index fell 1.27% after inflation data reflected a combination of low domestic demand and high commodity prices, and as the country continued to report a rising number of coronavirus cases. get a raise.

In Hong Kong, where infections have risen to a record high, the number has fallen by more than 2%.

However, damage in the broader region was controlled by gains elsewhere, with resource-heavy Australia up 0.85%. In Tokyo, an increase of 0.3%.

“I think we’re tiring Russia out. We’ve had 10-12 days of being bombarded by headlines about Russia. And while it’s tragic what’s happening there, at the same time I think that we have effectively judged the worst of the worst,” said Matt Simpson, senior market analyst at City Index.

Stock prices wobble in Asia followed by another day in the red on Wall Street, where it fell 0.56%, lost 0.72% and fell 0.28%.

Rodrigo Catril, senior FX strategist at National Australia Bank (OTC:), said: “The market is still volatile, with no confidence in price impact from news streams amid the complexities of the UK. global economy.

Pointing to a retreat from safe-haven assets, the yen weakened 0.16 to 115.84, while the dollar fell against a basket of its currencies to 99.056.

The euro was 0.07% higher at $1.0907 and the ruble was last quoted at 122.5 against the greenback.

Yields on US Treasuries fell, with the benchmark 10-year bond last yielding 1,8507%, down from 1.871% late Tuesday. The most recent 2-year bond yielded 1,6008%, down from 1.629%.

Gold prices were steady 0.14% to $2,055.31 an ounce after previous sharp slide.

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