The resulting higher inflation will likely urge central banks around the globe to take a more aggressive approach to tighten monetary policy. This may hurt Asia’s major oil importing country such as China, Japan and India. Surging crude oil prices may weigh on economic recoveries as the cost for energy and raw material rises. As a result, WTI crude oil prices soared 10% overnight to $106 bbl, marking its largest single day gain since April 2020. Market participants are vigilant about a potential further escalation of the Ukraine situation that may result in direct sanctions on Russia’s energy exports – a major revenue source for Kremlin. There are growing calls from US lawmakers to cut off US imports of Russian oil, which will add supply constraints in an already tight market. EU ambassadors agreed to exclude seven Russian banks from the SWIFT payments network, which is crucial to the country’s settlement of trade in crude oil, natural gas and other commodities. Western powers retaliated with stringent economic sanctions on Russian financial institutions and the central bank. Russian defense minister Sergei Shoigu said that the country will continue its military operation in Ukraine until it achieves its goals. The fight in the capital city of Kyiv continued for a sixth day, with the Russian military shelling cities around the clock. The S&P 500 index fell 1.55% on Wednesday as heightened geopolitical tensions in Eastern Europe weighed on market sentiment. S&P 500, Ukraine, Crude Oil, Asia-Pacific at Open :
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