Oil prices rise after uprising in Russia, stocks mixed

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Oil prices rose on supply concerns and stock markets were mixed after Yevgeny Prigozhin’s army pulled out of Russia, ending an armed uprising of warlords but raising doubts about the stability of Vladimir Putin’s regime Done.

International benchmark Brent crude rose 1.3 percent to $74.80 a barrel in early trade in Asia on Monday, while US marker West Texas Intermediate gained 1.4 percent to $70.11 a barrel.

Crude benchmarks gained as Prigozhin and his Wagner mercenaries struck a deal with Moscow over the weekend to withdraw from southern Russia following comments by Putin comparing the crisis to the 1917 revolution.

Traders said the short-lived rebellion raised serious questions about Putin’s regime’s approach, but the immediate impact on crude output from one of the world’s top suppliers remained uncertain.

“Any serious geopolitical event at any major oil supplier has the potential for supply disruption,” said Stephen Innes, managing partner at SPI Asset Management. “It opens a can of worms and we’ll have to see how it works out.”

Gold and the yen also saw modest gains on Monday following the uprising as risk-off sentiment prevailed in the markets. Gold rose 0.4 percent to $1,928 per troy ounce, while the yen rose 0.1 percent to 143.5 yen against the dollar.

The yen was also buoyed by comments from a Bank of Japan board member who suggested the central bank should debate changes to its yield curve control policy.

Bond markets benefited from a flight to the heavens, with the yield on the 10-year US Treasury falling 0.01 percentage point to 3.727 percent.

China’s renminbi fell 0.5 percent to a seven-month low of 7.2153 against the dollar as the country’s markets returned from a long holiday and worries over the country’s economic growth mounted.

Stock markets in Asia were mixed on Monday, with Japan’s benchmark Topix index rising 0.2 percent and Hong Kong’s Hang Seng falling 0.3 percent. China’s CSI 300 index fell 1.5 percent.

Australia’s S&P/ASX 200 index fell 0.4 per cent after analysts at Goldman Sachs downgraded the country’s equities to underweight due to poor prospects for Chinese economic growth.

Futures markets pointed to modest gains early on Wall Street, with the benchmark S&P 500 set for a 0.2 percent rise and the tech-focused Nasdaq up 0.3 percent. The FTSE 100 in London was expected to rise 0.1 percent.