The price of a barrel of crude, already on the march higher in January on supply worries and expectations of a strengthening global economic recovery, has rocketed upward since Russia launched its invasion of Ukraine on February 24.Risking even higher US fuel prices, President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation for the invasion of Ukraine, amid strong support from American voters and lawmakers.
“The oil shock by nature is an accruing one, not a one-off and the potential for the market to hit $150 before returning to $100 is easier for investors to digest,” said Stephen Innes, managing partner at SPI Asset Management. In morning trade in Asia, global benchmark Brent crude was trading at $130.31 per barrel, up 1.82% on the day but still off a peak of $139.13 touched on Monday.Russia calls its actions a “special operation,” and it said earlier this week that prices could surge to $300 a barrel and it could close the main gas pipeline to Germany if the West blocked its oil exports.
China’s blue-chip CSI 300 index was 0.47% higher, pulling back from stronger gains earlier after new inflation data reflected a combination of soft domestic demand and high commodity prices.The gains marked a turnaround after three sessions of sharp losses that pushed the MSCI index down more than 6% to its lowest level since late September.
It's not just US oil prices that will be hit. Here's how Russia's assault on Ukraine will impact the housing market.