Rising tensions on the Russia-Ukraine border are pushing stock prices down and oil, gas and gold prices soaring. Geopolitical tensions with economic and financial consequences create great uncertainty.
There is no panic for the time being, except in the Russian financial markets, which are the epicenter of the conflict. The Moscow stock exchange already lost 10.5% yesterday and repeated such a loss at today’s open, minus 9%, which can be called a real collapse. All other European exchanges opened with 2-3% losses, but the losses gradually eased, with a few decimal gains on the records by midday.
Russia is the second largest oil exporter and gas producer in the world after Saudi Arabia. Analysts believe that the crisis surrounding Ukraine and the Western sanctions against Russian politics and business could have serious consequences for the oil price and therefore for the pump price.
North Stream 2
Dependence on Russian gas arose last autumn, when Russia supplied less, European gas supplies were not in order and prices soared. Last weekend, European Commission President von der Leyen accused Russian energy giant Gazprom of deliberately stocking gas and giving the EU as little as possible in the face of rising demand, and prices exploded.
Meanwhile, Russia respects long-term contract agreements but refuses to comply with requests for additional gas supply until Germany starts using the new Nord Stream 2 gas pipeline. Germany announced today that it has halted the pipeline approval process following Ukrainian President Zelensky’s call for completion. Withdraw from Nord Stream 2.
golden flight
This morning’s share price gains were almost exclusively due to higher energy prices from Shell. Oil and gas have become considerably more expensive, Brent oil costs almost 100 dollars for a VAT, the highest price in September 2014.
Gold prices are rising as tensions around Ukraine escalate further. Already paid $1900 for an ounce (31.1 grams). Gold is often referred to as a safe haven in times of uncertainty in the stock markets.
Source: NOS
Smith Charles is a talented entertainment journalist and author at The Nation View. He has a passion for all things entertainment and writes about the latest movies, TV shows, music, and celebrity news. He’s known for his in-depth interviews with actors, musicians, and other industry figures, and his ability to provide unique perspectives on the entertainment industry.
