Crude oil extended its rally Wednesday, after the US, EU and UK governments signalled plans to ban or phase out oil and gas imports from Russia, following the country’s violent invasion of Ukraine.
Brent Crude, the global oil benchmark, rose 1.9 per cent on Wednesday morning. The energy source, which is also essential for a range of industrial processes, has climbed nearly 90 per cent in the past year.
Investors were braced for a patchy rally in commodities after President Putin announced intentions to ban exports, without naming specific raw materials or energy inputs.
Metals such as nickel and palladium, which are used in a range of industrial processes including car exhausts, have rocketed in price this week. Palladium reached record highs this week, and trading in Nickel suspended in London on Tuesday after it rose sharply.
Russia’s stock markets remained shuttered as the rouble fell 5 per cent against the US dollar in Moscow on Wednesday.
Credit ratings company, Fitch Ratings, said that Russia could be pushed to default on its debt by sanctions introduced by major economies.