Rolling coverage of the latest economic and financial newsNickel price doubled at one stage on supply worries and short squeezeRussia threatens Europe’s gas supplies as west mulls oil import ban over Ukraine invasionWall Street suffers biggest slide in more than a year as oil prices surgeHow important is Russian oil and how high could prices go?Russia-Ukraine war: humanitarian corridor opened from Sumy; Moscow threatens to cut gas supplies to Europe – liveJapan’s Nikkei share index has closed at a 16-month low, as investors worried that surging commodity prices would hurt corporate earnings and slow down economic growth.The Nikkei shed 1.7%, or 430 points, to end at 24,790.95, the lowest since November 2020 (when vaccine trial success sparked a worldwide share rally).The uncertainty and volatility in stock markets are being pumped by headlines about the Russia-Ukraine conflict, with investors fearing a rise in inflation owing to sanctions imposed on Russia and the American economy may face stagflation if the situation worsens.Although crude oil prices took a step back, they are still near the 14-year high while European commodities such as wheat, gas, and nickel climbed higher.“This is the tightest fundamental backdrop in years and the developments in Russia/Ukraine have ignited a market that was already a coiled spring. How high can oil prices go? Pick a number, this is a market in disarray.Market fundamentals are the strongest in at least 15 years… it is not unfathomable for prices to rocket to $200/bbl by summer, spur a recession and end the year closer to $50/bbl ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today. Two weeks ago, such a notion would have been ludicrous.” Continue reading…
Rolling coverage of the latest economic and financial news
- Nickel price doubled at one stage on supply worries and short squeeze
- Russia threatens Europe’s gas supplies as west mulls oil import ban over Ukraine invasion
- Wall Street suffers biggest slide in more than a year as oil prices surge
- How important is Russian oil and how high could prices go?
- Russia-Ukraine war: humanitarian corridor opened from Sumy; Moscow threatens to cut gas supplies to Europe – live
Japan’s Nikkei share index has closed at a 16-month low, as investors worried that surging commodity prices would hurt corporate earnings and slow down economic growth.
The Nikkei shed 1.7%, or 430 points, to end at 24,790.95, the lowest since November 2020 (when vaccine trial success sparked a worldwide share rally).
The uncertainty and volatility in stock markets are being pumped by headlines about the Russia-Ukraine conflict, with investors fearing a rise in inflation owing to sanctions imposed on Russia and the American economy may face stagflation if the situation worsens.
Although crude oil prices took a step back, they are still near the 14-year high while European commodities such as wheat, gas, and nickel climbed higher.
“This is the tightest fundamental backdrop in years and the developments in Russia/Ukraine have ignited a market that was already a coiled spring. How high can oil prices go? Pick a number, this is a market in disarray.
Market fundamentals are the strongest in at least 15 years… it is not unfathomable for prices to rocket to $200/bbl by summer, spur a recession and end the year closer to $50/bbl ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today. Two weeks ago, such a notion would have been ludicrous.”