Markets recovered quickly after an initial deep open in red. The lack of escalation of the situation in Ukraine at the moment seems to reassure investors. Bel20 is down just 0.25 percent.
Prices in the energy markets continued to rise. The price of oil, in particular, continued to rise towards $100. On Tuesday, the price rose 1.4 percent to $96.7. Since 2014, oil has cost more than $100 a barrel. Russia is the second largest oil exporter in the world after Saudi Arabia. Further pressure on Russian production through boycotts or military actions could exacerbate the already limited supply situation in the oil markets.
The price of gas in Europe has also increased further. The Dutch TTF contract – the most important for the European market – rose 9.2 percent to 79.3 euros per megawatt-hour. This is far from the standard price, because in December last year 167 euros were paid for the same amount of gas. Since Germany has decided not to operate the Nordstream 2 pipeline, this means that gas supplies from Europe’s main gas supplier, Russia will continue to decline.
Moreover, Russia is the largest and Ukraine is the fifth largest grain exporter in the world. The tensions have caused prices to rise further in recent days.
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