Oil jumps over $100 and the Russian-Ukrainian situation is getting worse 2022-02-24T19:07:04 Oil jumps over $100 and the Russian-Ukrainian situation is getting worse: One man’s sludge is another man’s liquid gold! Oil rose to an almost 8-year high, following the geopolitical tensions currently taking place in Europe. Evest follows market developments in the following report. Topics: Oil above $100 European stock indices are falling Latest Updates on the Russo-Ukrainian War US President Joe Biden Russian Deputy Defense Minister Nikolai Pankov US Secretary of State Anthony Blinken The European Union imposed sanctions Oil above $100 On Thursday morning, oil prices exceeded a 7-year high, against the backdrop of rising geopolitical tensions, and the price of North Sea Brent oil reached $100 per barrel for the first time since September 2014. The cost of Brent crude futures for April on the London Stock Exchange ICE Futures rose by $100.01 per barrel, 3.27% higher than the closing price of the previous session. US oil futures’ prices for March in electronic trading on the New York Mercantile Exchange (NYMEX) rose by 3.74% up to $95.54 per barrel. European stock indices are falling European stock indices mostly declined against the background of Wednesday’s trading, except for the British index. The composite index of the region’s largest companies, the Stoxx Europe 600, fell on Wednesday by 0.28% to 453.86 points. The German DAX index fell by 0.42% and ends trading at the lowest level in 11 months, the French CAC 40 index fell by 0.1%, the Italian FTSE MIB index declined by 0.34% and the Spanish IBEX 35 index declined by 0.63%. The British FTSE 100 index added 0.05%. Pressure is being put on European markets by the continued escalation of tensions around Ukraine. Kyiv reported new cyber-attacks on government sites, blaming Moscow, and declared a state of emergency in the country as of February 24. In the meantime, Russia announced the evacuation of the country’s embassy staff in Ukraine. According to analysts, new reports of cyber-attacks on government sites and banks in Ukraine raise concerns that a direct Russian attack on the country is imminent. “Markets need to deal not only with the conflict itself but also concerns about further Western sanctions against Moscow, as well as Russian retaliatory sanctions.” German Chancellor Olaf Scholz said Tuesday that he has halted the certification process for Nord Stream 2, and the White House is planning to announce sanctions against the gas pipeline operator, Nord Stream 2 AG, according to US media. On the other hand, inflation in the Eurozone reached a record high with high prices of natural gas, coal and electricity. Consumer prices in the eurozone rose by 5.1% in January compared to the same period last year, a record high, according to final data released on Wednesday by the European Statistics Office. The statements coincided with both the initial estimate and analysts’ unanimous expectations. Energy prices rose by 28.8%, and the cost of food, alcohol and tobacco products rose by 3.5%. The inflation rate, excluding energy, was 2.5%. Consumer price growth in January was 0.3% compared to the previous month, the lowest in six months. The stock prices of European companies involved in the construction of Nord Stream 2 fell at the end of trading. Therefore, the price of French securities, Engie, fell by 0.1%, Shell by 0.6%, OMV by 2.4% and Onyber by 9.3%. Latest updates on the Russo-Ukrainian War On Thursday, it became known that Russia would conduct a special military operation in Donbas in accordance with the Charter of the United Nations, the resolution of the Council of the Union and the agreements with separate Donetsk and Luhansk. “I have decided to conduct a special military operation, aimed at protecting persons who have been harassed and genocide by the Kyiv regime for eight years. We will therefore strive for Ukraine’s demilitarization,” said Russian President Vladimir Putin in his speech. “We must bring to justice those who committed many bloody crimes against civilians, including citizens of the Federal Republic of Russia,” he added. The President of Russia demanded that the Ukrainian army lay down its weapons and threatened an overwhelming response to those foreign States that decided to intervene in the situation. Earlier, the heads of the two separate states appealed to Putin, in order to avoid civilian casualties and prevent a humanitarian disaster in Donbas, to provide assistance in repelling aggression from the Ukrainian armed forces, as they described. US President Joe Biden In turn, US President Joe Biden threatened Russia with accountability for its actions against Ukraine. “The United States and its allies and partners will respond in a unified and decisive manner. Russia will be held accountable by the world,” Biden said in a statement issued by the White House. The Federation Council approved the use of the Russian Armed Forces outside the territory of Russia with regard to the situation concerning Donbas. Russian Deputy Defense Minister Nikolai Pankov Russian Deputy Defense Minister Nikolai Pankov said at the meeting that this had resulted from the fact that the situation in Donbas was escalating and Russia must protect the population. For his part, EU diplomat Josep Borrell said on Tuesday that the package of sanctions that the EU is preparing to adopt against Russia will bring severe damage to the country. Borrell also noted that the European Union is working in coordination with the United States, the United Kingdom and Canada. US Secretary of State Anthony Blinken United States Secretary of State Antony Blinken said that if Ukraine’s situation escalated, Russia would face serious consequences. He noted that such actions by Moscow would strengthen NATO in Europe, and Ukraine would be provided with additional security assistance, in addition to diplomatic, political, economic and humanitarian support. US President Joe Biden announced that he had ordered sanctions against Nord Stream 2 operator and Nord Stream 2 AG. “Today my Administration has imposed sanctions on Nord Stream 2 AG and its leaders,” the White House said in a statement on Wednesday. “As I said, we will not hesitate to take further action,” Biden added. The European Union imposed sanctions The European Union imposed sanctions on 351 deputies of the State Duma and 27 other dignitaries and organizations. The measures include the freezing of assets and an embargo on the provision of funds to listed individuals and entities, as well as an embargo on travel and transit through the European Union. The European Union has also imposed sanctions to limit Russia’s access to financial markets and capital. Bloomberg, citing an American official, stated that US President Biden’s administration is prepared, if necessary, to impose sanctions on other Russian financial institutions, particularly against Sberbank and VTB. “No financial institution in Russia will be safe if the invasion continues,” the agency source added.