BusinessDay

Oil rise above $111 amid more sanctions against Russian invasion of Ukraine

Asian stocks came under renewed pressure on Wednesday and the price of oil surged past $111 per barrel as investors worried about the impact of aggressive sanctions against Russia for invading Ukraine.

European bourses were set for a weak open after Tuesday’s drubbing, with Euro Stoxx 50 futures down 0.13% and German DAX futures 0.17% lower in early deals. FTSE futures rose 0.34%.

Global sanctions against Russia have prompted a string of major companies to announce suspensions to or exits from their businesses in the country.
Exxon Mobil said on Tuesday that it will exit Russia operations, including oil production fields, following similar decisions by British oil giants BP PLC and Shell , and Norway’s Equinor ASA. Apple also announced a halt to sales in all of Russia while the expulsion of Rissia from SWIFT the global payments platform piled more misery on Putin.

Exxon’s announcement comes as the price of oil continues to climb. On Wednesday, global benchmark Brent crude blew past $110 per barrel, rising more than 5.8% to $111.09, its highest since early July 2014.

In the latest tightening of restrictions on Moscow, the United States banned Russian flights using American airspace, following similar moves by the European Union and Canada.

U.S. President Joe Biden announced the ban during his State of the Union speech on Tuesday, in which he also said Russian President Vladimir Putin would “pay a continuing high price” for the invasion of Ukraine.u

In Australia, the benchmark ASX 200, index gained 0.28% despite the risk-off mood elsewhere as rising commodity prices lifted miners’ shares.

Read also: What proposed sale of ExxonMobil assets means for Nigeria’s economy

“The Russia-Ukraine conflict will probably continue to dominate markets for the foreseeable future. The announcement yesterday that Russia will not pay coupons to foreign holders on its government debt should push investors further into safe-havens,” ING analysts said in a note.

Global sanctions against Russia have prompted a string of major companies to announce suspensions to or exits from their businesses in the country.

Exxon Mobil said on Tuesday that it will exit Russia operations, including oil production fields, following similar decisions by British oil giants BP PLC and Shell , and Norway’s Equinor ASA

Exxon’s announcement comes as the price of oil continues to climb. On Wednesday, global benchmark Brent crude blew past $110 per barrel, rising more than 5.8% to $111.09, its highest since early July 2014.

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