New York, March 7, 2022 — Stocks are tumbling on Wall Street Monday as another big leap for oil prices threatens to squeeze inflation’s grip on the global economy.
The S&P 500 fell 2.2% after a barrel of U.S. oil surged to $130 overnight on the possibility the U.S. could bar imports from Russia. Stocks around the world slid even more sharply earlier in the day, also taking their cue from oil’s movements, though their losses moderated as crude receded toward $120 per barrel.
The Dow Jones Industrial Average was down 610 points, or 1.8%, at 33,004, as of 2:28 p.m. Eastern time, and the Nasdaq composite was 2.5% lower. Stocks are on pace for their worst losses since Russia invaded Ukraine.
Gold and a measure of nervousness on Wall Street were also higher, though not by quite as much as when oil prices hit their peak. The price of gold briefly touched $2,007.50 per ounce before settling at $1,995.90, up 1.5%.
Oil prices have soared recently on worries that Russia’s invasion of Ukraine will upend already tight supplies. Russia is one of the world’s largest energy producers, and oil prices were already high before the attack because the global economy is demanding more fuel following its coronavirus-caused shutdown.
U.S. House Speaker Nancy Pelosi said in a letter to her colleagues on Sunday that “the House is currently exploring strong legislation” to further isolate Russia because of its attack on Ukraine. That could include a ban on imports of Russian oil and energy products, she said.
It’s a major step that the U.S. government has not yet taken, despite a long list of moves to punish Russia, as the White House has said it hopes to limit disruptions to oil markets. It wants to limit price jumps at the gasoline pump.
Reports also said U.S. officials may be considering easing sanctions against Venezuela. That potentially could free up more crude oil and ease concerns about reduced supplies from Russia.
A gallon of regular already costs an average of $4.065 across the country after breaching the $4 barrier on Sunday for the first time since 2008. A month ago, a gallon averaged $3.441, according to AAA.
A barrel of U.S. crude oil was trading at $120.06 per barrel, up 3.9%, after earlier touching $130.50. Brent crude, the international standard, was up 4% at $122.88 per barrel after earlier topping $139.
U.S. House Speaker Nancy Pelosi said in a letter to her colleagues on Sunday that “the House is currently exploring strong legislation” to further isolate Russia because of its attack on Ukraine. That could include a ban on imports of Russian oil and energy products, she said.
It’s a major step that the U.S. government has not yet taken, despite a long list of moves to punish Russia, as the White House has said it hopes to limit disruptions to oil markets. It wants to limit price jumps at the gasoline pump.
Reports also said U.S. officials may be considering easing sanctions against Venezuela. That potentially could free up more crude oil and ease concerns about reduced supplies from Russia.
A gallon of regular already costs an average of $4.065 across the country after breaching the $4 barrier on Sunday for the first time since 2008. A month ago, a gallon averaged $3.441, according to AAA.
A barrel of U.S. crude oil was trading at $120.06 per barrel, up 3.9%, after earlier touching $130.50. Brent crude, the international standard, was up 4% at $122.88 per barrel after earlier topping $139. – AP
