Possible Russia Oil Ban Sends Brent Soaring Along With Gold, Silver — US Futures Tumble Heading Into New Trading Week

Oil futures surged in the early hours of Monday along with precious metals, and U.S. futures took a reverse course.

Oil Shock: April 22 WTI Crude futures were up 8.8% at $125.87 at press time, while May 22 ICE Brent Crude May 22 futures rose 9.8% to $129.70. 

Brent touched as high as $139.13 per barrel earlier, which is the highest seen since July 2008, according to a CNBC report. 

The increase in oil prices reportedly occurred after the Secretary of State Antony Blinken said on Sunday that the United States and its allies are considering a ban on Russian oil and natural gas imports. 

Brent could touch as high as $150, according to Commonwealth Bank of Australia’s Vivek Dhar, as per CNBC.

Precious Metals Shine: Both Gold and Silver futures were up at press time. Gold COMEX April 22 futures traded 1.3% higher at $1,992.80. Spot gold was seen 0.8% higher at $1,987.33. 

Silver COMEX May 22 futures traded 1.3% higher at $26.13. Spot silver was up 0.47% at $25.82.

Precious metals are not only rising on the back of the ongoing Russia-Ukraine conflict but also its associated implications, said Ole Hansen, an analyst with Saxo Bank, according to a Reuters report.

“This not only due to a potential short-term safe-haven bid which will ebb and flow, but more importantly due to what this tension will mean for inflation, growth and central banks’ rate hike expectations,” said Hansen. 

U.S. Futures Sink: U.S. Futures were down at press time. Dow Futures fell 1.1% to 33,213 at press time. S&P 500 and Nasdaq futures traded 1.3% and 1.7% lower at 4,269.25 and 13,598.25 respectively. 

The fall in futures came amid worsening geopolitical tensions and rising energy prices.

On Friday, the SPDR S&P 500 ETF Trust SPY closed 0.8% lower at $432.17.

Apple Inc AAPL and Tesla Inc AAPL shares closed 1.8% and 0.1% lower at $163.17 and $838.29 respectively.

Investors will be on the lookout for the Consumer Price Index for February. The release is due Thursday, according to the U.S. Bureau of Labor Statistics.

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