Crude oil, Russian ruble volatile after Wagner rebellion

On the morning of June 26, WTI and Brent crude oil prices both increased, while the ruble fell to a 15-month low against the USD.

In early trading this morning, US WTI crude oil prices rose 1% to nearly $70 a barrel. Brent crude oil prices also rose nearly 1% to $74.8. Last week, both types of oil fell nearly 4%.

Currently, the increase of WTI and Brent is only around 0.2%. Analysts say the price increase is due to concerns that the rebellion of the private military group Wagner in Russia will disrupt the supply in the world's leading oil producing country. The rebellion on June 24 is considered the biggest crisis Russia has faced in decades.

"The movements in commodity markets show that risk-off sentiment has emerged. Investors are concerned that any disruption in Russia could cause disruption in global energy markets," Chris Iggo, chief investment officer at Core Investments, told CNBC.

Chicago wheat futures also fluctuated this morning as investors assessed the impact of developments in Russia last weekend. Prices fell 1% at one point, then rose 0.5%. This month, wheat prices have increased 25% due to dry weather in the US and the escalation of the Russia-Ukraine war.

The Telegraph also cited information from local Russian newspapers on June 24 showing that many currency exchange points in Russia listed the price of 200 rubles for one dollar. This figure increased sharply compared to only 85 rubles for one dollar the day before.

This morning, the ruble price fell to a 15-month low against the USD, at 87.23 rubles per US dollar, according to Reuters.

Asian stocks were mixed early in the day due to the riots. Japan's Nikkei 225 index was up and down, currently down 0.2%. South Korea's Kospi opened lower but later rose, currently up 0.5%.

The Hang Seng Index (Hong Kong) fell 0.3%. The Shanghai Composite (China) and the S&P/ASX 200 (Australia) fell 1.1% and 0.5%, respectively.

"Stock markets could see a small bounce" on hopes that Wagner's rebellion could be the beginning of an end to the conflict in Ukraine. However, a cooling US economy and high interest rates could drag stocks lower, Clifford Bennett, an economist at ACY Securities in Australia, told CNN.

Ha Thu

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