LONDON — Oil prices jumped
further Tuesday as the
EU proposed further sanctions against major crude producer
Russia in response to killings in the Ukrainian town of Bucha that have
prompted international condemnation.
اضافة اعلان
Elsewhere, European
and
US stocks were mostly lower, while Asian equity markets rose. The dollar
was mixed versus major rivals.
Oil rising again “is
bad news for corporates looking to manage cost pressures, and for consumers
already struggling to stomach higher energy bills”, noted Russ Mould,
investment director at AJ Bell.
While countries in
Europe — particularly
Germany — rely heavily on energy from Russia, the
possibility of an oil embargo sent both main crude contracts sharply higher
Monday.
In the end the EU
didn’t target oil, instead calling for sanctions on coal and shipping.
But Brent North Sea
and WTI oil continued their rise on Tuesday, helping to pare some of the sharp
losses seen Friday in reaction to a pledge by Washington and other major
economies to unleash millions of barrels from their stockpiles to keep a lid on
prices, which are fanning already high inflation.
White House National
Security Advisor
Jake Sullivan signaled more US sanctions were on the way this
week.
The US Treasury said
Tuesday said that the US will bar
Russia from making debt payments using funds
held at American banks, to ramp up the economic pain on Moscow.
Wall Street opened
moderately lower after posting strong gains Monday despite continued
uncertainty caused by the war in Ukraine.
But market analyst
Patrick J. O’Hare at Briefing.com said investors were concerned that the rally
by stocks off March lows won’t last.
Investors “will be
battling the idea that further upside will be harder to come by given an
existing backdrop that includes rising interest rates, persistently high
inflation pressures around the globe, and Russia’s continued attack on
Ukraine,” he said.
Traders will be
keeping a close eye on the release this week of minutes from the
Federal Reserve’s most recent policy meeting, hoping for an insight into officials’
thinking over future monetary policy.
After the Fed’s expected quarter-point
interest rate hike last month, there are increasing bets on a half-point lift
in May in light of soaring inflation and strong jobs data that suggest the
US economy remains robust enough to absorb higher borrowing costs.
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