Good morning, readers. Oil prices have soared, and both WTI and Brent crude have now topped $110 per barrel. Commodities broadly have surged on the back of Russia’s attack on Ukraine.
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Let’s get into it.
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1. Oil has notched a seven-year high. Brent and WTI crude surged as much as 10% yesterday as Russia stepped up its attack on Ukraine. Prices of both have traded above the $110-per-barrel mark today and this is in spite of an upcoming increase in available supply.
In an effort to rein in prices, the International Energy Agency — a 30-country coalition including the US, Japan, and Germany — agreed to a coordinated, global release of 60 million barrels from its oil stockpiles.
Half of that will come from the US, and half will come from Europe and Asia in what will be the IEA’s first release since the Libyan civil war in 2011.
“(The) fragile situation in Ukraine and financial and energy sanctions against Russia will keep the energy crisis stoked and oil well above $100 per barrel in the near-term and even higher if the conflict escalates further,” Louise Dickson, an analyst at Rystad Energy, said in a note.
Oil stocks, meanwhile, have benefited, with the US energy sector up 28% in 2022, making it the best-performing sector on the market.
Here’s how oil looks this morning:
- Brent crude futures are up 5.3% at $110.51 per barrel.
- WTI crude futures rose 5% to $108.70 per barrel.
DANIEL LEAL/AFP via Getty Images.
In other news:
2. US futures have bounced back after yesterday’s drop. But with oil having topped $110 a barrel and bond yields in retreat, the mood is cautious. See what’s happening on the markets today.
3. A slate of apparel earnings: Abercrombie & Fitch, American Eagle, and Burlington Stores, all reporting.
4. Morgan Stanley shared its picks for stocks well-positioned to beat the market. These companies, according to the bank, are insulated from the macro risks and rising rate environment weighing on investors. See the list of 31 stocks here.
5. Ukraine raised $270 million in war bonds to support its military. Following a wave of cryptocurrency donations, the country has turned to more traditional finance to fund its efforts against Putin’s advancing forces.
6. The yield on the key 10-year Treasury is plummeting amid Russia’s invasion of Ukraine. It’s tumbled nearly 30 basis points from 2%, where it was just before Russia’s initial attack. Here’s why it matters.
7. Warren Buffett’s pandemic-hit businesses roared back to life in 2021 thanks to a select few sectors. Berkshire Hathaway capitalized on resurgent demand for housing, furniture, construction materials, and microchips in 2021. See what his winning portfolio looked like.
8. A high-school dropout who owns over 100 units and grosses six-figures per month in rental income explained his real-estate approach. After two decades of following his buy-and-hold property investing strategy, the “Lumberjack Landlord” has 36 buildings in New Hampshire and he’s been able to build generational wealth.
9. Goldman Sachs named stocks that are backed by over $5 trillion in mutual fund and hedge fund money. The firm said that combining the preferences of the two types of firms can generate an edge for investors — see the list of nine stocks.
JPMorgan
10. French and Italian banks appear to be most exposed to Russia, followed by US banks. Separately, the Institute of International Finance noted that almost half of Russia’s foreign reserves are held in nations that have frozen Russian assets. It’s chief economist said a Russia default is “extremely likely.”
Don’t forget to listen to The Refresh from Insider to stay on top of the news.
Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.)
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