Ukraine crisis: Oil and gold turn costlier amid sanctions on Russia

Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.
 
Brent crude rose $ 2.79, or 2.85 per cent, to $100.72 by 9.12 pm IST after touching a high of $105.07 a barrel in early trade. The Brent contract for April delivery expires on Monday. The most active contract, for May delivery, was up $3.14 at $97.26.
 
US West Texas Intermediate (WTI) crude was up $ 4.01, or 4.38 per cent, at $95.60 after hitting $99.10 in early trade.
 

At the MCX, crude oil for March 21 delivery was trading at Rs 7,188 per barrel, up 5.1 per cent. Earlier, it was up nearly 7 per cent. “Growing concerns about disruptions to Russian energy supplies are pushing oil and gas prices up sharply,” Commerzbank analyst Carsten Fritsch said.
 
Gold, too, became costlier amid heightening fears of a hit to global economic growth. At 9.12 pm IST, it was trading at 1,908.30 an ounce, up 1.02 per cent. In India, 10 gram standard gold again breached the Rs 50,000 mark as it closed at Rs 50,493.
 
“The purpose of buying gold (in the domestic market), is to monetize it when required,” Nicky Shiels, head of metals strategy at MKS PAMP SA, wrote in a note. “It’s the fear over potential central bank sales that may overhang the market.”