NEW YORK, March 2 ― Oil shot back above US$100 a barrel and US and German government debt rallied yesterday as fears increased over the impact of aggressive sanctions against Russia after its invasion of Ukraine, further depressing stocks in Europe and on Wall Street.
On the sixth day of Russia's invasion of Ukraine, the disruption caused by sanctions have raised questions about the toll of the crisis on global growth and inflation. “Moving forward, though, there's all these second- and third-derivative impacts that the market is still trying to figure out,” Saglimbene added. “When you cut Russia out of the global financial system, what are the ramifications for not only Russia, but stability across Europe right now?”
Oil prices surged more than 10 per cent at one point as talks about a coordinated global release of crude inventories failed to calm fears about supply disruptions due to the war. Both oil and gas prices are now up nearly 60 per cent since fears of an invasion of Ukraine began to escalate in November.