HONG KONG, Feb 28, 2022 (BSS/AFP) - Oil prices and safe havens surged Monday
while equities mostly fell and the ruble plunged after world powers imposed
fresh sanctions on Russia over its invasion of Ukraine, fanning fears about a
possible global energy crisis that could further stoke inflation.

  Russian President Vladimir Putin's decision to send troops across the
border last week has sent shivers through trading floors as investors fret
over a protracted war in the resource-rich region.

  Adding to the unease among investors was news that Putin had put his
nuclear forces on a higher alert in reaction to the latest stiff measures.

  Markets had rallied Friday as dealers assessed that the punishments imposed
on Moscow were light enough to not hit its crucial oil exports -- Russia is
the world's third-biggest producer -- at a time when supplies are thin and
demand is surging.

  But the picture was changed at the weekend, when the United States and
European Union said they would exclude some Russian banks from the
international bank payments system SWIFT and personally targeted Putin and
Foreign Minister Sergei Lavrov.

  They also banned all transactions with Russia's central bank, sending the
ruble crashing, with Bloomberg saying it was indicated to be nearly 30
percent down in offshore trading Monday.

  "Removing some Russian banks from SWIFT could result in a disruption of oil
supplies as buyers and sellers try to figure out how to navigate the new
rules," Andy Lipow, of Lipow Oil Associates in Houston, noted.

  Crude surged, with WTI heading closer to the $100 mark, while Brent bounced
back above that level after slipping on Friday.

  Other commodities rallied, with wheat up eight percent, while aluminium and
nickel were also sharply higher.

  Traders will be closely watching a meeting this week of OPEC and other
major producers led by Russia, where they will discuss plans for further
output.

  The group had agreed previously to increase production gradually each
month, but the Ukraine crisis could throw those plans into disarray.

  Gold and the yen, go-to assets in times of uncertainty, rose, while the
dollar was up against all other currencies.

  The euro was under pressure owing to Europe's reliance on Russian energy.

  The surge in prices is adding to worries about inflation, which is running
at a 40-year high in the United States, with central banks already fighting
an uphill battle to get it under control.

  The conflict is "likely to boost energy prices significantly, resulting in
immediate inflationary effects and a large drag on global growth," Silvia
Dall'Angelo, senior economist at Federated Hermes, wrote in a note.

  "It's fair to say that the crisis increases the room for central banks'
policy mistakes."

  On equity markets Tokyo, Hong Kong, Shanghai, Seoul, Singapore and Bangkok
were in negative territory, though there were some gains in Sydney, Manila
and Wellington.