Russian President Vladimir Putin announced a partial mobilization of the military, leading to an escalation of the war in Ukraine, raising fears of further shortages of oil and gas supplies. Oil prices rose more than 2% on Wednesday, Sept. 21, following the above-mentioned events. The dollar rose to its highest level in 20 years. In this case, the Russian ruble fell. Meanwhile, European stock markets also fell.
Brent crude futures were up $2.28, or 2.5%, at $92.90 a barrel by 07:07 GMT. It fell $1.38 the day before. U.S. West Texas Intermediate crude futures rose $2.22, or 2.6%, to $86.16 a barrel.
Global energy markets are concerned about a global shortage of crude oil and natural gas supplies. And ahead of winter, Europe is experiencing a supply crisis.
As winter approaches, global demand for oil continues to rise. And with the end of 2022 approaching, the market is awaiting a slew of European sanctions on Russian crude.
Dollar, Ruble and European Stocks
The dollar jumped to its highest level in 20 years against other major currencies on Wednesday, Sept. 21, under the influence of Putin’s statement. Although the green currency benefited from bets on tighter monetary policy ahead of the Federal Reserve meeting later on Wednesday. But the U.S. dollar index, which compares with other currencies such as the yen, euro and pound, rose 110.87 points. This was the highest increase since 2002. As for the Russian ruble, the currency fell 1% to 61.2 against the dollar.
Meanwhile, European stock markets opened lower on Wednesday on the 21st. Investor worries about the U.S. central bank raising interest rates for the third time later on Tuesday intensified as Russia announced its decision to partially mobilize the military.
The Dow Jones Europe Stoxx 600 fell 0.3%. Most of those sub-sectors fell, with the rate-sensitive tech sector down 1.2%, while energy rose 1% as oil prices rose on news of Russia’s mobilization of troops.