Oil climbs above $110 a barrel as Russia intensifies assault on Ukraine

Oil pushed additional above the $100 threshold and Asian shares bought off on Wednesday after Russia intensified its assaults on Ukraine’s largest cities and adopted extra aggressive techniques.

Brent crude, the worldwide benchmark, rose as a lot as 5.8 per cent to a seven-year excessive of $111.09 a barrel in early Asian buying and selling, whereas US marker West Texas Intermediate climbed as a lot as 5.7 per cent to $109.30.

The newest good points for oil, which left Brent virtually 16 per cent greater since Russian president Vladimir Putin launched his invasion, got here as Russia stepped up its bombardment of Ukraine’s largest cities.

Sanctions imposed on Russia by western nations have sought to keep away from the power sector however have nonetheless stoked volatility in world markets on issues over disruptions to provide. However US power group ExxonMobil mentioned on Tuesday it might exit Russian oil and gasoline operations, marking the newest company exit in response to the invasion.

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Joe Biden has additionally come beneath mounting strain to ban Russian oil imports, with each Republicans and Democrats calling on the US president to chop off power ties with the Kremlin. In his State of the Union speech on Tuesday, Biden voiced assist for punitive measures towards Russia however harassed that getting costs beneath management was his “highest precedence”.

“The Russia-Ukraine battle will most likely proceed to dominate markets for the foreseeable future,” mentioned Robert Carnell, head of Asia-Pacific analysis at ING. “The announcement yesterday that Russia won’t pay coupons to overseas holders on its authorities debt ought to push traders additional into protected havens.”

In Asian markets, equities bought off, led by a 2 per cent drop for Japan’s benchmark Topix. China’s CSI 300 index of Shanghai- and Shenzhen-listed shares and Hong Kong’s Dangle Seng index each shed greater than 1 per cent.

The falls adopted sharp declines on Wall Road, the place each the S&P 500 and tech-focused Nasdaq Composite dropped 1.6 per cent. Futures tipped the S&P 500 to edge up 0.2 per cent on Wednesday, whereas the Euro Stoxx 50 was set to dip 0.3 per cent after ending Tuesday’s session down 2.4 per cent.

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In sovereign bond markets yields on US Treasuries steadied after rallying on Tuesday, as traders sought havens to mitigate share worth falls. Yield on the 10-year US Treasury was up 0.03 share factors at 1.745 per cent after dropping virtually 0.1 share level in the course of the earlier session.

In currencies, the rouble steadied at about 108 towards the greenback after a punishing rout this week that has left it virtually 30 per cent decrease because the invasion started.

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