Global markets follow negative course amid high energy prices

By Tuba Sahin

ANKARA (AA) - While global markets are following a negative course amid high crude prices, the Russian war in Ukraine and hawkish signals by US Federal Reserve officials, investors focused on high-profile meetings in Brussels on Thursday.

Brussels is hosting a NATO summit, a meeting of EU leaders, and a Group of Seven summit which are expected to discuss Western concerns over the war.

Ukrainian President Volodymyr Zelenskyy is expected to attend the NATO summit via video conference.

After more than a 5% surge on Wednesday due to disruption in the Caspian pipeline and President Vladimir Putin's remarks saying Russia would demand that “unfriendly countries” pay for Russian natural gas exports only in rubles, crude oil prices calmed on Thursday with the hope of new oil supply deals with Iran.

Global benchmark Brent crude was trading at $120.38 per barrel, down 1% at 06.46 GMT.

Putin said after the US and EU sanctioned the Russian state debt in dollars and euros, which in economic terms means they announced a default on their financial liabilities to Russia, there is no longer any reason to continue to use these currencies.

Russian and Kazakhstan oil exports via the Caspian Pipeline Consortium (CPC) from the Black Sea will be halted for one and a half months and storm-damaged berths might reduce oil flow by up to 1 million barrels per day, or 1% of global oil production.

Global markets will also monitor March provisional data of Manufacturing Purchasing Managers' Index (PMI) in the euro area, the UK, Germany and the US, and US weekly initial jobless claims on Thursday.​​​​​​​