Oil looking for direction, deal with Iran hypothesized
Crude Oil is slowing but continuing to rise after the rally of the past few days, with WTI up 5.1% on Wednesday to a touch of $115 a barrel. Investors, on the one hand, are assessing the impact of the war in Ukraine on supplies, on the other hand, they are examining the possibility that one will be found deal with Iran, as speculated by US National Security Advisor Jake Sullivan. “If Iran’s export restrictions were lifted, it would be of immense help in defusing the current tensions in the oil market,” say analysts at JBC Energy. However, an agreement still seems to be pending.
Nickel +15%, trading resumed on Lme
Also in the session of Thursday, March 24, the price of nickel rose to the set ceiling, +15% in London, reaching $37,235 per tonne. As in the previous meeting, the negotiations were then suspended. The Lme had suspended trading for a week in early March after prices rose a recordbreaking 250% in two sessions, then capped moves. When it reopened, prices fell and shopping returned. Russian President Vladimir Putin has called for Russian gas exports to be paid for in rubles, and this has fueled fears, according to operators, that other commodities such as nickel could also be treated the same.
Partial reopening for Moscow Stock Exchange, Moex closes
Partial reopening for the Moscow Stock Exchange, although trading is restricted, from 9:50 a.m. to 2:00 p.m. local time. The stock market has been closed since February 25, after the rubledenominated Moex index lost 33% the previous day (the day the invasion of Ukraine began, ed.). The Moex, which was up 10% at the start, on which only 33 of the 50 listed stocks were traded, ended up 4.37% at 2,578.51 points. In contrast, the dollardenominated RTS index fell 9%. The capitalization of the Russian market is very limited compared to the main European and Asian stock exchanges. Foreign investors cannot sell shares in the market and short selling is generally prohibited.
Gas prices continue to rise after the rally
Amsterdamtraded natural gas contracts expiring in April are up (+6% to €125 per megawatthour) after the previous night’s rally followed comments from Russian President Vladimir Putin who said he would no longer accept the euro and dollar only rubles for Russian gas payments.
The announcement hit the markets around 1:30 p.m. Wednesday: Russia will no longer accept payments in dollars and euros for its gas shipped to Europe, only rubles. This pushed the ruble higher, which fell below 100 for a dollar while remaining far from the preinvasion 75. But most importantly, it has sent gas prices (up 30% on Wednesday before paring the jump somewhat) and oil (Brent is back above $120 a barrel) higher. This obviously had a negative impact on the stock markets. With a level head, markets need to understand the implications of this Russian move. And above all the European reactions: if there were no official ones on Wednesday, it is possible that this issue will be raised at the European Council on Thursday and Friday.