Oil prices hit seven-year highs near $100 after Russia sent troops to Ukraine – Business Live | Business

Hello and welcome to our ongoing coverage of the global economy, financial markets, eurozone and business.

The worsening Ukraine crisis sent global stocks down and crude oil up. Last night, Russian President Vladimir Putin ordered his army to enter Russian-held areas in southeastern Ukraine. In a long televised address, he had recognized the territories of Donetsk and Luhansk as independent states.

Washington, European countries and other countries have condemned the decision and threatened to impose severe sanctions.

Boris Johnson is chairing a meeting of Britain’s Cobra emergency committee this morning to sign a package of sanctions against Russia. The first signs were that the package would target “those who are complicit in the violation of the territorial integrity of Ukraine”.

You can find out more on our live blog on the Ukraine crisis.

The financial markets are preparing for a torrid day. In Asia, Japan’s Nikkei lost 1.7%, Hong Kong’s Hang Sing fell 2.9%, the Shanghai Composite fell just over 1% and Korea’s Kospi South fell 1.35%.

European and American markets are also prepared for heavy losses at the opening bell.

In oil markets, Brent is marching toward $100 a barrel amid supply fears. It gained more than $2, or 2.2%, to $97.51 a barrel, while US light crude jumped $3.60 to $94.67 a barrel, a gain of almost 4 %.

Viktor Szabo, emerging markets portfolio manager at abrdn in London, told Reuters last night:


It’s probably an understatement to say it’s going to be a bad day [on the markets]. I was hoping it wouldn’t come to this, but this is an important step.

Russian markets were still trading when Putin announced his decision live on television following phone calls to German and French leaders.

The ruble fell 3.3%, topping 80 against the dollar, as Moscow stock markets fell to their lowest level in more than a year. The dollar-denominated RTS index ended the day down 13.2% while Russia’s ruble-based MOEX index lost 10.5%.

Javier Blas
(@JavierBlas)

As European capitals (and Washington) ponder how to respond to Putin, together the EU, UK and US will over the next 24 hours buy around 3.5 million barrels of oil and of Russian refined products, worth >$330 million at current prices. Add to that gas, aluminum, nickel, etc.


February 21, 2022

Agenda

  • 9 a.m. GMT: Ifo survey on the business climate in Germany (forecast: 96.5)
  • 9 a.m. GMT: Final inflation in Italy for January (forecast: 4.8%)
  • 10.45 GMT: Bank of England Deputy Governor Dave Ramsden delivers a speech
  • 11am GMT: CBI survey on industrial trends for February
  • 2pm GMT: US home prices for December
  • 2:45 p.m. GMT: US Markit PMIs for February (industrials, services and composites)
  • 15:00 GMT: US consumer confidence for February (forecast: 110)

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