Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.
Brent crude rose $ 2.79, or 2.85 per cent, to $100.72 by 9.12 pm IST after touching a high of $105.07 a barrel in early trade. The Brent contract for April delivery expires on Monday. The most active contract, for May delivery, was up $3.14 at $97.26.
US West Texas Intermediate (WTI) crude was up $ 4.01, or 4.38 per cent, at $95.60 after hitting $99.10 in early trade.
At the MCX, crude oil for March 21 delivery was trading at Rs 7,188 per barrel, up 5.1 per cent. Earlier, it was up nearly 7 per cent. “Growing concerns about disruptions to Russian energy supplies are pushing oil and gas prices up sharply,” Commerzbank analyst Carsten Fritsch said.
Gold, too, became costlier amid heightening fears of a hit to global economic growth. At 9.12 pm IST, it was trading at 1,908.30 an ounce, up 1.02 per cent. In India, 10 gram standard gold again breached the Rs 50,000 mark as it closed at Rs 50,493.
“The purpose of buying gold (in the domestic market), is to monetize it when required,” Nicky Shiels, head of metals strategy at MKS PAMP SA, wrote in a note. “It’s the fear over potential central bank sales that may overhang the market.”
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor