ECONOMYNEXT – Oil prices spiked after Russia President Vladimir Putin ordered a partial mobilisation to hold onto occupied territories in Ukraine which international reports said could lead to further disruption to energy supplies.
Bloomberg reported that West Texas Intermediate surged toward 87 US dolalrs a barrel, adding as much as 3.2 percent.
Putin’s order came as Western media outlets began to express cautious optimism about a possible Ukrainian victory, seven months after Russia invaded the country.
International media reports said that, in a rare address to the nation, President Putin had announced that the decree on partial mobilisation of its 2 million-strong military reserves has been signed. The decision, which Putin said was taken “to defend the motherland, its sovereignty and territorial integrity” will be viewed as an escalation by the West.
Bloomberg reported that crude is on track for its first quarterly loss in more than two years as concerns over a global economic slowdown weigh on the outlook for energy demand. The US Federal Reserve decision will be followed by other central banks from Europe to Asia, which are also expected to increase borrowing costs, it said. (Colombo/Sep21/2022)