World oil prices surge; gold climbs to four-month high
4 March 2014 6:19 AM IST
New York’s main contract, West Texas Intermediate (WTI) for April delivery, gained $1.20 to $103.79 in mid-morning trade, and Brent North Sea crude for April jumped $1.48 to $110.55.
Lawmakers in Moscow voted on Saturday to allow President Vladimir Putin to send troops into Crimea, a predominantly Russian-speaking peninsula in the southeast of Ukraine following the ouster of its pro-Russian government last week.
Desmond Chua, market analyst at CMC Markets in Singapore, said that the escalating tension in Ukraine is providing strong support for oil prices.
‘Considering that Ukraine is part of the supply chain for Brent, we are looking at this pent-up risk premium resulting in overshooting prices,’ Chua told AFP. ‘Right now we would have our eyes on Ukraine, on the situation in Crimea... I do think that at least for the next couple of days this situation will be superseding any other market data,’ Chua added.
JP Morgan Commodities Research analysts noted that Ukraine is neither a major oil producer nor oil consumer but it said it is an important transit country for Russian energy exports.
More than 70 per cent of Russia’s gas and oil flows to Europe pass through its territory. In turn, Europe is the buyer for nearly 90 per cent of Russia’s oil exports.
Meanwhile, gold prices on Monday surged to a more than four-month high as concern of a conflict between Russia and Ukraine boosted demand for a haven. Gold shot up 1.8 per cent to $1,350.37 an ounce, the highest since October 30. Silver also rose 1.4 per cent to $21.52 an ounce.
Ukraine put its forces on combat readiness over the weekend after Russian President Vladimir Putin got parliamentary approval to send troops into its southern neighbor.
United States President Barack Obama warned Russia not to intervene while America’s Secretary of State John Kerry travels to Ukraine today to offer support as Russian troops occupy the Black Sea region of Crimea. Bullion is the best gainer in 2014, on the Standard and Poor’s GSCI Index of 24 commodities as unrest in Ukraine and signs of slower economic growth boosted demand for a store of value.
Lawmakers in Moscow voted on Saturday to allow President Vladimir Putin to send troops into Crimea, a predominantly Russian-speaking peninsula in the southeast of Ukraine following the ouster of its pro-Russian government last week.
Desmond Chua, market analyst at CMC Markets in Singapore, said that the escalating tension in Ukraine is providing strong support for oil prices.
‘Considering that Ukraine is part of the supply chain for Brent, we are looking at this pent-up risk premium resulting in overshooting prices,’ Chua told AFP. ‘Right now we would have our eyes on Ukraine, on the situation in Crimea... I do think that at least for the next couple of days this situation will be superseding any other market data,’ Chua added.
JP Morgan Commodities Research analysts noted that Ukraine is neither a major oil producer nor oil consumer but it said it is an important transit country for Russian energy exports.
More than 70 per cent of Russia’s gas and oil flows to Europe pass through its territory. In turn, Europe is the buyer for nearly 90 per cent of Russia’s oil exports.
Meanwhile, gold prices on Monday surged to a more than four-month high as concern of a conflict between Russia and Ukraine boosted demand for a haven. Gold shot up 1.8 per cent to $1,350.37 an ounce, the highest since October 30. Silver also rose 1.4 per cent to $21.52 an ounce.
Ukraine put its forces on combat readiness over the weekend after Russian President Vladimir Putin got parliamentary approval to send troops into its southern neighbor.
United States President Barack Obama warned Russia not to intervene while America’s Secretary of State John Kerry travels to Ukraine today to offer support as Russian troops occupy the Black Sea region of Crimea. Bullion is the best gainer in 2014, on the Standard and Poor’s GSCI Index of 24 commodities as unrest in Ukraine and signs of slower economic growth boosted demand for a store of value.
Next Story
