LONDON: Oil prices surged while stock markets fell on Wednesday on renewed fears over Russian energy supplies and soaring inflation.

Crude futures jumped more than four percent with Brent North Sea, the international benchmark, exceeding $120 per barrel.

Russian Deputy Prime Minister Alexander Novak on Wednesday warned that a ban on Russian oil and gas imports over the Ukraine war -- which some EU countries are demanding -- would drive the world’s energy markets to a “collapse”.

“It is absolutely obvious that without Russian hydrocarbons, if sanctions are introduced, there will be a collapse of the oil and gas markets,” Novak told Russia’s lower house State Duma as reported by Russian news agencies.

“The rise in energy prices may be unpredictable,” Novak added.

President Vladimir Putin, meanwhile, hit back at “unfriendly countries” -- which include EU members -- as he announced that Russia will now only accept rubles for gas deliveries.

Russia also warned that repairs at a terminal near a Black Sea port may take up to two months and lead to a drop in oil exports of about one million barrels per day.

Moscow could face more sanctions as US President Joe Biden left Wednesday for Europe on a mission to bolster Western unity against Russia.

On stock markets, London’s benchmark FTSE 100 index was down 0.2pc in afternoon trading.

In Frankfurt, the DAX was 1.5pc lower while the Paris CAC 40 was shedding 1.3pc.

Wall Street was lower in morning deals.

Published in Dawn, March 24th, 2022