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Tuesday, March 21, 2023

FTSE 100 Live 07 March: Brent crude oil price highest since 2008, London market shares slide continues

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Six directors quit Polymetal board

Six directors of Russia’s Polymetal International have quit the board of the London-listed gold miner.

Those going include chairman and mining veteran Ian Cockerill and senior independent director Ollie Oliveira. The mass departures have left Polymetal with a board consisting of chief executive Vitaly Nesis and two non-executive directors.

Steel producer Evraz, which is 29% owned by Chelsea owner Roman Abramovich, also announced that Sandra Stash has stepped down with immediate effect. On Friday, it emerged that James Rutherford had resigned.

Both stocks continue to trade on the London market but have lost more than 70% of their value since the invasion of Ukraine.

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Brent crude jumps to $130 a barrel

Brent crude futures have jumped 10% to almost $130 a barrel, their highest level in 14 years after the US raised the prospect of a ban on Russian oil exports.

Delays over talks that could lead to the return of Iran’s supplies to the international oil market also contributed to the latest spike in prices.

Wheat prices, which have been driven to record high due to Ukraine and Russia accounting for 30% of all exports, continued to rise today.

The prospect of a significant economic slowdown caused by these soaring energy and food prices means another grim session for stock markets today.

Asian markets fell sharply this morning and the FTSE 100 index is poised to open another 130 points lower after last week falling 6.7% in its worst performance since March 2020.

Deutsche Bank commentator Jim Reid said: “There hasn’t been much new news over the weekend that progresses the narrative on the conflict and it’s looking more likely that this will be an attritional battle absent a major development.

“For economies and markets, especially in Europe it then depends on whether the gas (and to a lesser extent oil) continues to flow from Russia to the continent.”

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