LONDON: Stock markets lost ground while metals prices hit record highs and oil surged on Monday after the United States raised the prospect of an embargo on Russian crude — a move on which Europe urged severe caution.
European markets seesawed after a four per cent fall in Hong Kong with Frankfurt losing 2pc over the session as London and Paris kept losses in a narrower band.
Wall Street was off just over 1.5pc two hours into a nervy session as traders monitored the state of talks between the warring parties. A 12th day of conflict brought a third round of talks between the warring neighbours — but Kyiv dismissed an offer from Moscow for humanitarian corridors that would lead refugees from bombarded cities into Russia and Belarus.
“It seems we could be moving to the next stage whereby countries lay down rules to not buy oil and other commodities from Russia which in turn would reduce its funding for the war,” said Russ Mould, investment director at AJ Bell.
Stocks fall amid talk of Russia crude ban
US Secretary of State Antony Blinken had said Sunday that the White House and allies were in talks about banning oil imports from Russia following its invasion of Ukraine.
But German Chancellor Olaf Scholz cautioned against banning Russian oil and gas, saying doing so could put Europe’s energy security at risk — a stance reiterated by other European leaders.
“While the US could probably get away with banning oil imports, it is clear that the case for doing so in Europe is a much harder one to make,” said Michael Hewson, chief market analyst at CMC Markets UK.
The benchmark Brent North Sea crude oil contract soared to a near 14-year high as it reached $139.13 before cooling to just under $123.
The record high stands at $147.50, achieved in 2008 during the global financial crisis.
Published in Dawn, March 8th, 2022
