Oil prices were sent soaring on Thursday, after Russian military forces invaded Ukraine in the early morning hours, raising concerns over global energy supplies.
Brent crude surged to an eight-year high this morning, trading at more than $105 per barrel, as investors braced for an escalation of tensions between Russia and Ukraine. Likewise, US West Texas Intermediate futures were up 8% on Thursday to around $100 per barrel— also the highest since 2014. Interestingly however, prices have since come down to day-ago levels, with the price of West Texas currently sitting at $93 and change at the time of writing.
“This growing uncertainty during a time when the oil market is already tight does leave it vulnerable, and so prices are likely to remain volatile and elevated,” said ING commodity research Warren Patterson to Reuters.
Gold also saw a substantial boost on Thursday, as traders piled into safe haven assets in response to Putin’s declaration of war. Spot gold jumped as high as $1,974 per ounce, while silver rose as high as $25.61 per ounce. “There is safe-haven demand for gold… this crisis is very inflationary because it’s adding upward pressure on commodities prices,” Saxo Bank analyst Ole Hansen said, as cited by Reuters.
The volatility however has lead to much of the gains being parred and even inverting, with gold now trading at $1,897 at the time of writing, down $10.23 on the day, while silver has fallen to $24.10, down $0.40 per ounce.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
