Earlier today, oil prices trimmed early gains, with markets largely influenced by an attempted mutiny in Russia and ardent fears that energy supplies would be disrupted by potential unrest in one of the world’s largest oil producer nations.
The movements in oil prices tracked a broad relative calm in the financial markets after the revolutionary growth in Russia over the weekend.
However, West Texas Intermediate futures and Brent crude were almost flat in midday Asian trade.
In the previous week, West Texas Intermediate futures surged by as much as 1.3% to just below $70 a barrel in early Asia trade after moulting almost 4%.
The MSCI Asia ex-Japan index, a measure of Asian stocks trading outside of Japan, remained at a three-week low, while currencies traditionally seen as safe havens were divided.
Chris Iggo, Chief Investment Officer for Core Investments and Chair of AXA IM Investment Institute, told CNBC in an interview that “We have seen in the early market moves that risk-off is being played in the commodity markets.”
“The fear that any disruption in Russia could lead to further disruptions in the global energy market,” he added.
On Saturday, Wagner mercenaries led by Prigozhin were marching towards Moscow, after taking control of the southern city of Rostov.
However, the armed rebellion was immediately called off on Sunday.
According to state-run TASS, Kremlin spokesman Dmitry Peskov said the criminal charges against Prigozhin were withdrawn after his soldiers turned back.
Ian Bremmer, president of Eurasia Group, told CNBC on Monday, “Obviously, this does show a level of unprecedented weakness for President Putin.”
“But at the same time, while Putin was unprecedentedly tested, there was not a single high-level defection from the Russian military, from the Russian government, or among the Russian oligarchs,” Bremmer said.
“Anyone that believes that Putin is suddenly on the brink of leaving power, also needs to recognize that’s not where we are,” he added.
- Published By Team Genuine Reporter