Technical & Fundamental Oil Reports Specialists

Follow us

Fed confidence contrasts with ECB agonising

Published Wednesday, April 30th, 2014

The US added 7 more individuals and 17 companies to its sanctioned list and the EU added 15 more individuals. It must have been less dramatic than had been expected by Russian investors because the RTS closed higher and the Micex unchanged. BP in particular must feel victimised once again by the White House.

The CEO of Gazprom was not on the banned list but the CEO of Rosneft is, which will make it very difficult for the CEO of BP, a US citizen, to remain on the board of Rosneft. The additional sanctions and potential impact on the Russian economy brought out the S&P knife once again and both Rosneft and Gazprom found themselves downgraded, in addition to 15 European banks placed on negative outlook.

Russia/Ukraine is a slow motion horror movie. It is so awful to contemplate what could happen that markets are not factoring in the downside. Respectable quarterly earnings and M&A activity is keeping stock markets happy, or more accurately distracted. Arguments, however, that the events in eastern Ukraine are local skirmishes rather than of potentially huge geopolitical significance are wishful thinking.

To read the rest of the report, please click here 

Posted by David Hufton