Global crude oil and gold prices rose on February 24, after Russian President Vladimir Putin ordered military action in eastern Ukraine but reiterated that he does not want to occupy Ukraine.
Russia’s move comes only days after Moscow acknowledged the independence of two rebel areas- Donetsk and Luhansk, in eastern Ukraine.
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Oil prices, which have been volatile in recent weeks due to the Ukraine-Russia conflict, jumped beyond $100 per barrel in Brent futures for the first time since 2014, as traders anticipated more sanctions would harm Russia’s crude oil exports. At 9:20 a.m., Brent crude oil futures were up 3% at $99.72 a barrel in Asian trading.
Since November 2021, global oil prices have risen by more than 30% due to a dramatic spike in demand caused by the reopening of global markets as the COVID-19 pandemic abated due to higher vaccination rates.
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However, global supply has failed to keep up with demand, resulting in a tight crude oil market, prompting analysts to forecast $100 per barrel of crude oil later this year. Analysts predicted that Russia’s invasion would result in sanctions on its oil industry, which would further reduce supplies in the market.
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Gold prices climbed substantially in early trading as investors sought safe-haven assets amid increased risk aversion as a result of Russia’s military activities in Ukraine. International gold futures were up 1.1% at $1,932 per ounce at 9:20 a.m. Gold reached an all-time high of $2074.88 in August of 2020.
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On the Multi Commodity Exchange (MCX) gold prices increased marginally on Thursday. Gold futures were trading at Rs 51,465.00 per 10 gm, up 1,086 points or 2.16%, while Silver futures were trading at Rs 66,848.00 per kg, up 1,459 points or 2.23%.
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Indian indexes began with a gap down today with the Nifty falling below 16,600 due to escalating geopolitical concerns in Eastern Europe. The Sensex fell 1,426.28 points, or 2.49%, to 55805.78, while the Nifty down 407.80 points, or 2.39%, to 16655.50. Approximately 270 shares have advanced, 1853 shares have declined, and 79 shares have remained constant.
