Global crude oil prices recovered early Friday after falling during a volatile previous session, after initially rising to decades on Thursday after the escalation in the war between Russia and Ukraine raised concerns about runaway inflation.
Oil markets were volatile due to supply disruptions caused by sanctions against Russia in the previous session, with Russian exports of 4 to 5 million barrels per day more than any country other than Saudi Arabia.
The international benchmark for oil – Brent oil futures, rose to within 16 cents from $120 a barrel – its highest since 2012, before falling to settle at around $110, in hopes the United States and Iran will soon reach an agreement. reaching a nuclear deal that could boost output in a badly undersupplied market.
But Brent crude futures rebounded, gaining more than 1.5 percent to $112 early Thursday, amid continued supply concerns and expectations that Russia’s war in Ukraine could hit the global economy. from higher prices to lower expenditure and investment.
Analysts also said a deal with Iran would not replace Russia’s disruptions.
Markets are volatile, with investors trying to “catch a lot of moving parts in one fell swoop,” Jeff Mortimer, director of investment strategy at BNY Mellon Wealth Management, told Reuters.
Commodity prices have also followed higher oil prices. Everything from coal to natural gas and aluminum is on the rise as sanctions against Russia after Ukraine’s invasion begin to disrupt supply.
“Russia was the world’s second largest producer of crude oil in 2020… In 2020, Russia was also the third largest aluminum producer… and the third largest nickel producer… in the world,” noted analysts from Motilal Oswal op. Institutional shares.
“We believe that sanctions against Russia will positively affect the prices of aluminum, nickel, steel, thermal coal and PCI coal. In addition, it will lead to cost increases due to alternative sourcing, delays in establishing new resources, delays in payments and the resulting resulting delays in, among other things, the release of shipments,” they added.
Asian stock markets suffered heavy losses, while gold prices rose on the worsening conflict between Russia and Ukraine.
Following a sell-off in global stock markets, Indian equities fell sharply on Friday after the escalating crisis in Ukraine fueled inflation and growth fears.