Putin imposes rubles on gas consumers

News of the day, Thursday, March 24

Stock markets were lower yesterday after the last week’s major gains as vast supply disruptions and general economic damage from the Ukraine invasion become even clearer. Russia has announced that the export terminal transporting Kazakh oil to the global market closes for up to two months due to the storm damage. The Caspian Pipeline Consortium’s link was about to deliver 1.5 million barrels daily in April. Furthermore, NATO Secretary General Jens Stoltenberg has warned that the use of nuclear arms will “change the nature” of the Ukraine war, and there is no way Russia would win the nuclear war. Following these events, both S&P 500 and Dow Jones Industrial Average fell 0.8%, Nasdaq Composite decreased by 1.1%, while WTI crude futures rose 4.2%, and Brent futures floated above $120 per barrel.

Russia’s President Vladimir Putin told the “unfriendly” countries will be required to pay for gas in rubles. The announcement made European gas prices soar, while the USD/RUB exchange rate has decreased to 95 which is the minimum since the Ukraine war started. 

The price of Brent crude is $122.80, WTI — $115.50, GBP/USD — 1.3163, EUR/USD — 1.0988, and gold costs $1940.00 per ounce.