Surge in oil price rattles markets as Ukraine conflict intensifies

Oil prices soared again on Thursday as the Ukraine war triggered a dash for commodities that could be in short supply, while stock markets slipped as investors worried about higher inflation and slowing economic growth.

Brent crude oil rose more than 5% to within a whisker of $120 per barrel before settling at $114. That still leaves it up nearly 20% since last Thursday, while everything from coal to natural gas and aluminium are surging as Western nations tighten sanctions on Russia following its invasion of Ukraine. Russia calls its actions a “special operation”.

“Russia supplies around 30% of Europe’s gas and oil imports and accounts for around 11% of world oil production,” said Shane Oliver, head of investment strategy at fund manager AMP. “In short, investors are worried about a stagflationary shock.”