LONDON: Crude oil prices surged on Tuesday as the US banned Russian oil imports, while nickel prices rocketed to a record peak on Russian supply fears.

While remaining below Monday’s peak of $139.13 per barrel, the main international oil contract, Brent, jumped 6.8 percent to $131.63.

The main US contract, WTI, rose by 6.7 per cent to $127.44 per barrel.

President Joe Biden announced a ban on US imports of Russian oil while Britain said it will phase them out by the end of the year.

EU nations, which receive roughly 40pc of their gas imports and one quarter of their oil from Russia, instead opted to set a goal of cutting their Russian gas imports by two-thirds.

Meanwhile, Moscow warned earlier that in retaliation for sanctions imposed on it for the invasion, it could cut off natural gas supplies to Europe via the Nord Stream 1 pipeline.

While the US does not import large amounts of Russian oil, analysts said the move was nevertheless important.

Market analyst Fawad Razaqzada at Think Markets called it the “launch of an an all-out economic war against Russia” by the United States.

“There will be consequences: high gas prices, even more inflation and retaliation from Russia.” Craig Erlam at OANDA said: “It’s another step towards the West turning its back on Russia and leaving it isolated in the world.” The rise in oil prices pulled the rug out from under a rebound in European and US equity prices. Commodity prices also felt the effects of the growing isolation of Russia.

The London Metal Exchange suspended trade in nickel after the base metal spiked to a record $101,365 per tonne as Russian supply concerns sparked sharp volatility.

Nickel is used to make stainless steel and batteries for electric vehicles.

Nickel prices have risen from around $20,000 per tonne in January, he noted, putting huge pressure on manufacturers.

Gold rose as high as $2,069.25, a level unseen since August 2020.

Published in Dawn, March 9th, 2022