Petrochemicals Are Booming! Natural Gas Soared 45%!

Russian President Vladimir Putin announced on the 24th local time a military operation in the Donbas region to "defend the people of Donetsk and Luhansk". The Russian Defense Ministry said that the Russian armed forces did not attack Ukrainian cities, but destroyed military infrastructure with high precision, hitting Ukrainian air defense facilities, military airfields and aviation units. According to official Ukrainian news, a total of seven people have been killed and nine others have been injured in the artillery attack.

Go to war! Artillery fire was heard in many places, and Ukraine entered a "wartime state"

According to Ukrainian media reports, at about 5:00 local time on the 24th, explosions were heard in Kiev, the capital of Ukraine, and cities such as Odessa, Kharkov, Kramatorsk and Berdyansk. Smoke billows from the attack on Ukraine's Chuguyev airport.

Ukrainian President Volodymyr Zelensky said that the entire territory of Ukraine will enter a state of war, and the Ukrainian administration announced the closure of the entire airspace. At present, the military infrastructure of the Ukrainian Armed Forces Air Force has been paralyzed, and the air defense of the Armed Forces has been completely suppressed.

Risk aversion heats up! Crude oil tops $100/barrel for the first time in 8 years

The Russian-Ukrainian crisis has been escalating, and the global capital market has experienced violent fluctuations. For the first time in 8 years, the international oil price has exceeded US$100 per barrel. As of press time, the price of Brent crude oil has soared to US$102 per barrel!

European gas futures surge 45%

On the 24th, the situation in Russia and Ukraine escalated, European natural gas prices rose sharply for the third consecutive day, and European natural gas futures prices soared by 45%.

Risk aversion heats up, and gold and crude oil soar. The intraday gains in the April and May contracts of U.S. oil and Brent oil once expanded to 5%, and both NYMEX crude oil and ICE Brent oil rose more than 4%.

In terms of futures, as of the close of noon on February 24, crude oil futures collectively rose sharply, of which crude oil futures rose 2.81%, fuel oil futures rose 2.50%, and the main contract of LU futures rose 2.12%.

The conflict situation between Russia and Ukraine also brought a big positive boost to the commodity market, with the oil sector up nearly 3%.

Taishan Petroleum rose by more than 8%, and Heshun Petroleum, Longyu Fuel, Xinchao Energy, and PetroChina followed.

The oil and gas exploration and service sectors also rose sharply. Hengtai Aipu, Huaiyou Co., Ltd., Beken Energy, etc. rose by the daily limit, while Shouhua Gas, Potential Hengxin, and Tongyuan Oil rose by more than 10%.

Global stock market shock

Moscow Stock Exchange suspends trading

On the 24th local time, the Moscow Stock Exchange announced that all stock exchanges have suspended trading and will be notified when they will resume trading.

Russia's St Petersburg Stock Exchange announces closure

On the 24th local time, the St. Petersburg Stock Exchange in Russia announced the closure of business.
Putin announces military action, Australia and New Zealand stocks fell sharply by more than 3%

On the 24th, after Russian President Vladimir Putin announced military action, the Australian and New Zealand stock markets fell sharply. The Australian share market fell more than 3%, evaporating more than A$60 billion on the day. New Zealand's NZX50 index closed the day at 11,732.55, down 3.3%, the biggest one-day drop since March 24, 2020.

Tokyo stock market Nikkei 225 index fell below 26,000 for the first time in 1 year and 3 months

According to the Japan Broadcasting Association (NHK), affected by the tension between Russia and Ukraine, the Nikkei 225 index of the Tokyo stock market fell by more than 600 points on the 24th, falling below 26,000 points for the first time in one year and three months.

U.S. stock futures tumble as Russia sends troops

According to the US "Capitol Hill" report, as of 22:30 US Eastern Time on the 23rd (11:30 Beijing Time on the 24th), due to the escalation of the Russian-Ukrainian situation brought about by Russian President Vladimir Putin's announcement to send troops to eastern Ukraine, the United States three The major stock index futures indexes collectively fell sharply. The Dow Jones futures index fell by more than 700 points, or 2.2%. The S&P 500 futures index and the Nasdaq industrial futures index fell by 2.3% and 2.8% respectively.

Oil prices still have room to rise, the chemical sector will be pushed up

The escalation of international geopolitical conflicts has pushed up the prices of natural gas and crude oil, and also affected the supply of global commodities. Russia is one of the largest oil producers in the world and an important supplier of crude oil and natural gas. If the current conflict escalates, the West may impose oil-related sanctions on Russia, and the price of crude oil is expected to continue to push up under the continuous tightening of global crude oil supply.

This will also have a huge impact on the chemical sector. On the one hand, crude oil, as the source product of the industrial chain, will affect the price of raw materials in the entire chemical industry chain, and it will also mean a cost boost for road freight with gasoline as the main raw material. At the same time, under the interaction with the continuous increase in the price of natural gas, it will also indirectly drive the price of coal. The rise and rise in the futures market may be quickly transmitted to the spot market.