All for Joomla All for Webmasters
FINANCE

How Oil Markets Reacted After Wagner Group Attempted Coup Against Vladimir Putin In Russia

Oil

Oil prices rose during Monday morning’s Asian trading session as investors and traders began digesting the impact of the attempted mutiny against Russian President Vladimir Putin while worries about a global slowdown remained.

West Texas Intermediate futures maturing in August rose 0.65% during Monday morning Asian trading session to trade at $69.68 per barrel. Brent futures maturing in August rose 0.73% to trade at $74.36 per barrel, according to Benzinga Pro.

Also ReadStimulus check update: Direct payment worth $500 to be issued to recipients in Wisconsin in six days

Rystad Energy Senior Vice President Jorge Leon wrote in a note that the internal military struggle in Russia adds limited oil price pressure amid heightened tensions in Moscow, according to a Bloomberg report. “We do, however, believe that the geopolitical risk amid internal instability in Russia has increased,” Leon said.

Fears of a recession due to extended rate hikes amid sticky inflation appear to be balancing any upward price pressure due to geopolitical and supply risks. This is given the fact that FederalReserve Chair Jerome Powell has indicated rates may be hiked by a further 50 basis points this year.

At the same time, higher-than-expected inflation and a subsequent surprise 50 basis points rate hike by the Bank of England seem to have unnerved investors who have begun weighing in on the possibility of extended rate rises in the U.S.

Also Read– Social Security update: Direct payment worth $914 arrives in eight days

Supply Concerns: RBC Capital Markets analyst Helima Croft said there were worries that Putin would declare martial law that would stop workers from showing up to major loading ports and energy facilities, potentially impacting millions of barrels of exports, according to a Reuters report.

“It is our understanding that the White House was actively engaged yesterday in reaching out to key domestic and foreign producers about contingency planning to keep the market well supplied if the crisis impacted Russian output,” she said in a note.

The United States Brent Oil Fund LP (NYSE:BNO) closed 0.16% lower on Friday while the Vanguard Energy Index Fund ETF (NYSE:VDE) shed 0.88%.

Also Read– Stimulus check update: Direct payment worth $500 to be sent today

Retirement can be a difficult part of life to navigate, and a financial advisor can help. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Source :
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top