Oil was marginally higher on Monday after an aborted weekend rebellion by Russian mercenaries increased concerns about petroleum supply, while markets lacked direction as investors awaited further information.
Brent crude prices rose 0.4% to $74.14 from $74.80. MSCI’s Asia-Pacific shares outside Japan index (.MIAPJ0000PUS) fell to a three-week low before fluctuating.
Japan’s Nikkei (.N225) fluctuated and closed flat. The safe-haven yen climbed slightly on suggestions of government intervention and a summary revealing a central bank board member advocated for a yield curve management policy debate in June.
European futures increased 0.3%.
On Saturday, Russian mercenaries seized Rostov and marched on Moscow, demanding the ouster of Ukraine war commanders.
The Wagner army retreated after securing their safety and exiling Yevgeny Prigozhin to Belarus. The Ukraine war’s effects remained unclear, but Russian President Vladimir Putin faced his biggest challenge in decades.
“Geopolitical risk amid internal instability in Russia has increased,” said Rystad Energy analyst Jorge Leon. “As such, we will likely see a marginal uptick in oil prices in the coming days if the situation does not deteriorate.”
RBC Capital Markets analysts warned martial law in Russia could affect port and industrial facility workers.
Italy’s foreign minister said Russia’s instability had shattered the “myth” of unity, while U.S. Secretary of State Antony Blinken predicted it might last months.
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