Green Stock Rally: RENIXX World Stock Index Rises Further After Discussions On Oil And Gas Embargo
Münster, Germany / Washington, USA - Since Putin's invasion of Ukraine, uncertainty has reigned on the stock exchanges, and global stock markets are teetering and on a downward slide. At times, there is a downright sell-off mood.
Importance grows: renewable energies become a national security issue for countries
Many indices such as DAX, Dow Jones, Nikkei & Co. are suffering heavy losses, because in addition to the effect of inflation-driving high commodity prices, the Russia effect is now also priced in. Against the trend, investors continue to buy green shares instead. The reasons for this are obvious.
On the very day the Russian invasion began, Feb. 24, 2022, the global renewable energy stock index, the RENIXX World (Renewable Energy Industrial Index), marked a new low for the year at 1,253.6 points. Since then, the global green stock market barometer knows only one direction, upwards. As of today (08.03.2022), the RENIXX currently stands at 1,655.56 points, more than 30 percent higher than at the start of the war.
According to the IWR institute for renewable energy, the exploding energy prices are accelerating the use of renewable energies, as they are becoming even more economically attractive than they already are. "It is clearly visible to everyone that fossil fuels such as oil, gas and coal are the real price drivers, not renewables," said IWR Director Dr. Norbert Allnoch in Münster.
The caesura and turning point initiated by Russia's invasion of Ukraine is likely to give renewable energies a further sustained global boost. Allnoch: "Many investors are only now becoming aware of how high the risk of dependence on price-driving fossil energies and on individual countries is. They have an inkling that this is not going to be the future."
Bloomberg: U.S. President Biden to ban U.S. imports of Russian oil as early as today
The U.S. is set to impose a ban on Russian energy imports to the U.S. as early as today, Tuesday, without involving European allies. Bloomberg news agency reports that the ban will include Russian oil, liquefied natural gas (LNG) and coal. Bloomberg claims to have learned this from people familiar with the matter.
Such a step was apparently already expected on the market, because already at the weekend the oil prices increased strongly. Up-to-date a barrel of the oil sort WTI costs 125 USD, Brent oil is to be had for 129 USD per barrel.
In Germany, the Federal Republic continues to reject an oil and gas embargo against Russia. Chancellor Scholz had stressed yesterday (07.03.2022) once again that the steps taken so far would already hit Russia sensitively. Therefore, the supply of Europe with energy for heat generation, mobility, electricity supply and for industry was deliberately excluded from the sanctions.
Meanwhile, the spiral of sanctions and counter-sanctions continues. The United Russia party has proposed nationalizing companies that have announced they will cease doing business in Russia.
Source: IWR Online, 08 Mar 2022
