Mid-Week Review – March 30, 2022

Putin should think about the consequences of asking for energy payments in rubles, Germany says

Germany has some advice for Russian President Vladimir Putin: think about the consequences of asking for energy payments in rubles. Russia’s Putin said last week that “unfriendly” nations would be asked to pay for their natural gas in rubles — causing a spike in European gas prices. By asking for payments in the Russian currency — rather than in dollars or euros, as is contracted — Putin is seeking to prop up the value of rubles, which sank in the wake of Russia’s invasion of Ukraine. The U.S. dollar is up almost 13% against the Russian ruble since Feb. 24, when Russia began its invasion of Ukraine, after spiking around 85% in early March. Click Here to read more from CNBC.

Oil Rises as Market Braces for Disruption Of Russian Energy Supply

Oil prices rebounded from Tuesday’s losses to rise by more than 3% early on Wednesday, as Russia signaled it would want rubles not only for gas but also for oil, metals, and grains. As of 9:34 a.m. ET on Wednesday, ahead of the weekly U.S. oil inventory report from the Energy Information Administration, WTI Crude was up 3.63% at $108.00, and Brent Crude was trading up 3.45% at $114.03. Volatility continued in the oil market this week. Oil slumped early yesterday, with the U.S. benchmark dipping briefly below $100 a barrel after signs emerged that the resumption of the Russia-Ukraine peace talks after two weeks may have been constructive. Click Here to read more from Oil Price.

Russia has effectively admitted defeat In Ukraine

On March 25, the Russian Ministry of Defense announced that the “first phase” of the invasion of Ukraine was over. A mere month earlier, President Vladimir Putin had vowed to completely destroy Ukraine’s military capabilities and to replace the Ukrainian government, which he claimed without any evidence was a neo-Nazi junta planning to commit “genocide” in Donbas. Click Here to read more from Al Jazeera.

Oil slides more than 8% as Shanghai lockdown prompts demand fears

Oil declined more than 8% at the lows of the day on Monday as concerns over new lockdowns in China and the potential impact on demand sent prices tumbling. West Texas Intermediate crude futures, the U.S. oil benchmark, slipped 8.25% to trade at $104.50 per barrel. International benchmark Brent crude traded 7.4% lower at $111.61 per barrel. However, both contracts recovered some losses during afternoon trading on Wall Street. WTI ended the day at $105.96 for a loss of about 7%. Brent settled 6.77% lower at $112.48 per barrel. Click Here to read more from CNBC.