[End of the World is Near]: Brent crude hits $130 a barrel; Oil Price increase, Market Plunges.

[steveluv]

https://asia.nikkei.com/Business/Markets/Brent-crude-hits-130-a-barrel-Nikkei-plunges?utm_campaign=GL_coronavirus_latest&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=10&pub_date=20220307150000&seq_num=11&si=44594

Brent crude hits $130 a barrel; Nikkei plunges
U.S., Europe ban on Russian products and delayed Iran nuclear talks spark fears

Brent was quoted $12.73 higher at $130.84, while U.S. crude rose $9.92 to $125.60.   © Reuters
March 7, 2022 09:12 JSTUpdated on March 7, 2022 11:54 JST

SYDNEY (Reuters) -- Oil prices soared and shares sank in hectic trading on Monday as the risk of a U.S. and European ban on Russian products and delays in Iranian talks triggered what was shaping up as a major stagflationary shock for world markets.

The euro extended its slide, hitting parity against the safe haven Swiss franc, and commodities of all stripes were on the rise as the Russian-Ukraine conflict showed no sign of cooling.

Russia calls the campaign it launched on Feb. 24 a "special military operation", saying it has no plans to occupy Ukraine.

Having surged more than 10% in wild early action, Brent was last quoted $7.90 higher at $126.01, while U.S. crude rose $6.67 to $122.35. 

That jump will act as a tax on consumers and the potential blow to global economic growth saw S&P 500 stock futures drop 1.5%, while Nasdaq futures shed 1.9%. U.S. 10-year bond yields also dropped to their lowest since early January.

EUROSTOXX 50 futures dived 3% and FTSE futures 2.5%.

Japan's Nikkei sank 3.2%, while MSCI's broadest index of Asia-Pacific shares outside Japan lost 1.6%. Chinese blue chips shed 0.8% amid a sea of red across Asian markets.

Having climbed 21% last week, Brent crude was further energized by the risk of a ban of Russian oil by the United States and Europe. Read full story

"If the West cuts off most of Russia's energy exports it would be a major shock to global markets," said BofA chief economist Ethan Harris.

He estimates the loss of Russia's 5 million barrels could see oil prices double to $200 a barrel and lower economic growth globally.

And it is not just oil, with commodity prices having their strongest start to any year since 1915, says BofA. Among the many movers last week, nickel rose 19%, aluminium 15%, zinc 12%, and copper 8%, while wheat futures surged 60% and corn 15%.

That will only add to the global inflationary pulse with U.S. consumer price data this week expected to show annual growth at a stratospheric 7.9%, and the core measure at 6.4%.

All of which complicates the policy picture for the European Central Bank when it meets this week. 

"Given the potential for stagflation is very real, the ECB is likely to maintain maximum flexibility with its asset purchase program at 20 billion euros through Q2 and potentially beyond, thus effectively pushing out the timing of rate hikes," said Tapas Strickland, an economist at NAB.

"Higher CPI forecasts, though, mean rate hikes will be needed on the horizon."

The near-term prospect of a more dovish ECB combined with safe-haven flows to drive German 10-year bond yields down a huge 32 basis points last week. U.S. 10-year yields were down at 1.69%, having already dropped 23 basis points last week.

Fed fund futures were also gaining as the market priced in a slower pace of rate rises from the Federal Reserve this year, though a March hike is still seen as a done deal.

With the outlook for European growth darkening, the single currency took a beating and fell 3% last week to its lowest since mid-2020. It was last down 0.8% at $1.0834 and in danger of testing its 2020 trough around $1.0635.

The euro was also tumbling against the Swiss franc to break under 1.0000 for the first time since early 2015.

The dollar was broadly firmer, supported in part by a strong payrolls report which only reaffirmed market expectations for a Fed hike this month. The dollar index was last at 99.134 having climbed 2.3% last week.

"Events in the Ukraine are increasingly overwhelming the euro," said Richard Franulovich, head of FX strategy a Westpac.

"With safe-haven flows likely to continue for some time yet and Fed officials eager to press on with their policy normalization plans, 100+ for (the dollar index) is just a matter of time."

Gold benefited from its status as one of the oldest of safe harbors and was last up 1.1% at $1,991 an ounce.

[Mustank]

Later you will say us$130 is cheap Liao ah

[Mustank]

Karh karh lai one litre $100

long Zhong lang tak Kar chia

[Nolicense]

  On 3/7/2022 at 6:14 AM, Mustank said:

Karh karh lai one litre $100

long Zhong lang tak Kar chia

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your kar chia all above $1000 a piece.. lol

[Beregond]

  On 3/7/2022 at 6:14 AM, Mustank said:

Karh karh lai one litre $100

long Zhong lang tak Kar chia

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new world order liao. got money keep in bank

dun know how crazy thing will get in 6mth times or next years😐

[Mustank]

  On 3/7/2022 at 6:38 AM, Beregond said:

new world order liao. got money keep in bank

dun know how crazy thing will get in 6mth times or next years😐

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Bro when the inflation so high until $100 per litter, money is useless le

[bsswan]

  On 3/7/2022 at 6:38 AM, Beregond said:

new world order liao. got money keep in bank

dun know how crazy thing will get in 6mth times or next years😐

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What currency to choose...... all will get screwed on and off. Switch to RMB as safe(r) haven?

[Ingenius]

Double post

Edited March 7, 2022 by Ingenius

[Beregond]

  On 3/7/2022 at 6:56 AM, bsswan said:

What currency to choose...... all will get screwed on and off. Switch to RMB as safe(r) haven?

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i saw this from somewhere else. the rough meaning is like that

Now the west got full sanctions on russia. EU already having debate if they need to live with higher energy cost and abandon cheap russian gas.

USA give china warning, they will punish china if china help russia.

If say after the war china help russia, and the west go all out to do full sanctions on china, what about sg? it means if we buy cheap china stuff, we could be punish also. We could be force to live like EU and pay for more expensive stuff ( that means all the stuff we use everyday ) business like mine can no longer imports from china etc etc.

Switch to RMB or usa also not safe. what if we choose china side? keep money in bank also not safe. cos our banks scare usa, if they freeze our account how?

I gonna change all my money into gold bar, and carry to my room to keep in a safe. 🧐

[inlinesix]

@kobayashiGTMixed message le.

Oil Price increase

Market Plunges

🤣

[bsswan]

  On 3/7/2022 at 7:10 AM, Beregond said:

If say after the war china help russia, and the west go all out to do full sanctions on china, what about sg? it means if we buy cheap china stuff, we could be punish also. We could be force to live like EU and pay for more expensive stuff ( that means all the stuff we use everyday ) business like mine can no longer imports from china etc etc.

Switch to RMB or usa also not safe. what if we choose china side? keep money in bank also not safe. cos our banks scare usa, if they freeze our account how?

I gonna change all my money into gold bar, and carry to my room to keep in a safe. 🧐

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Gold bars are fine until they are radioactive.

My own imports from EU are screwed on multiple fronts; the rise in copper, rise in LCL and FCL freight (Air freight, forget it already) and double long lead times on both raw material at factory side and in shipping. The only plus, slightly, is the dip between Euro to SGD.

 

 

Nobody's getting out alive!

[Adrianli]

Looks like now offshore drilling will be picking up. My ex-company will be making a killing if offshore drilling picks up!!!

[Jamesc]

Oil is dinosaur lah.

Now must use renewables.

[Adrianli]

  On 3/7/2022 at 7:33 AM, Jamesc said:

Oil is dinosaur lah.

Now must use renewables.

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Isnt oil also renewable from those dinosaurs? 

[Jamesc]

  On 3/7/2022 at 7:39 AM, Adrianli said:

Isnt oil also renewable from those dinosaurs? 

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Yes it is.

Recycle from dinosaurs.

They say reuse and recycle so we should use more oil.

Edited March 7, 2022 by Jamesc

[bsswan]

  On 3/7/2022 at 7:39 AM, Adrianli said:

Isnt oil also renewable from those dinosaurs? 

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WE are the next dinosaurs so our ancestors, once re-evolved from what's left, will do just fine for new-oil.

[macrosszero]

Not sure how the “end of the world” is near just because you can’t afford to fill up your car…… but ok

[Buadongdong]

  On 3/7/2022 at 6:14 AM, Mustank said:

Karh karh lai one litre $100

long Zhong lang tak Kar chia

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Then Garmen will introduce road tax or simi sai tax to all the kar chia, we get f***d either way.. Will say our park connectors all jammed up. need to introduce gantry to regulate kar chia traffic. 😂

Edited March 7, 2022 by Buadongdong
typo