Crude oil price ramps up, Russian ruble dips
2 Min Read
After the west slapped sanctions on Russia for its military operation in Ukraine, Russian ruble plunged almost 30 percent.
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A crude oil pump jack in the Permian Basin in Texas, US (Reuters)
After Western nations imposed additional sanctions on Russia for its military operation in Ukraine, including banning some institutions from using the SWIFT international payments system, crude oil rose and the ruble fell about 30 percent to a new record low on Monday.
After Russian President Vladimir Putin put nuclear-armed forces on full alert on Sunday, bond rates were boosted, as well as the dollar and yuan, while the euro dropped.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said, on Friday, that sanctions imposed by the West on Russia may have an impact on the global economy due to increasing inflation caused by rising oil and grain prices.
After Russia's recognition of the republics of Donetsk and Lugansk in Donbass last week, oil prices soared near $100 per barrel.
Fears that oil supplies from the world's second-largest producer will be interrupted have increased as tensions have risen, pushing Brent crude LCOc1 futures up $4.21, or 4.3 percent, to $102.14. WTI oil CLc1 futures in the United States were up $4.58, or 5.0 percent, at $96.17 per barrel.
At the outset, U.S. emini stock futures were forecasting a 1.57 percent decrease, while pan-European EURO STOXX 50 futures STXEc1 were down 2.83 percent.The Nikkei 225 index in Japan increased 0.48 percent, reversing a previous drop. After falling down at one point, Australia's benchmark gained 0.64 percent. However, Chinese blue chips fell 0.21 percent.
The regional stock index of MSCI gained 0.09 percent.
In the meanwhile, the 10-year US Treasury yield declined 6 basis points to 1.92 percent, and similar Australian rates decreased 6 basis points to 2.18 percent.
The euro fell 0.9 percent to $1.1170 and the yen fell 0.87 percent to 129.065 yen, while the risky Australian and New Zealand currencies fell 0.66 and 0.76 percent, respectively.
The ruble dropped 29.37 percent to a new low of 119 per dollar.
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