Brent crude jumps above $120; stocks pare losses
BNN Bloomberg
Oil jumped on the prospect of a ban on Russian supplies, while European stocks and U.S. futures pared losses.
Oil jumped on the prospect of a ban on Russian supplies, while European stocks and U.S. futures pared losses.
Major stock markets in Europe earlier fell more than 20 per cent from highs amid fears of an inflation shock. Travel stocks were down in U.S. premarket trading, while energy shares surged after Brent crude rose as high as US$139 a barrel, before trading closer to US$120. European gas, palladium and copper hit all-time highs.
The Biden administration is considering whether to ban the import of Russian oil and energy products, a move that could add to economic pressure as more companies pull out of the country in response to Moscow’s invasion of Ukraine. Ukrainian and Russian officials will meet again for a third round of talks, but hopes for progress in the meeting later on Monday are low as Russian leader Vladimir Putin says Kyiv must to agree to his demands if fighting is to end.
Commodities from grains, metals have also surged on concerns of chaos in raw-material flows due to the invasion and sanctions on Russia that are turning the resources powerhouse into a global pariah. Commodity-linked currencies strengthened.
The euro fell -- at one point dropping below parity against the Swiss franc -- on concerns about the economic outlook for Europe, which relies on Russian energy. The dollar advanced and gold rose to US$2,000 an ounce.
