Oil markets breathe a 'sigh of relief' after Russian mutiny was aborted

Oil prices pared aboriginal gains connected Monday, tracking a broader calm successful fiscal markets arsenic investors watched warily to spot if there'll beryllium further fallout from an attempted insurrection successful Russia that could disrupt vigor supplies from 1 of the world's largest lipid shaper nations.

Mercenaries led by Yevgeny Prigozhin, person of the Wagner radical of backstage militia, marched toward Moscow connected Saturday, successful what was seen arsenic the biggest menace to Vladimir Putin's 23-year grip connected power.

The militia radical reportedly took power of confederate metropolis of Rostov-on-Don — wherever respective large lipid and state pipelines intersect — earlier the equipped rebellion was abruptly called off, little than 24 hours aft it began.

"Collectively the satellite would person breathed a suspiration of alleviation astatine slightest connected the lipid marketplace broadside that the disruption successful the Russian authorities did not spell done the worst that radical feared," Alok Sinha, Standard Chartered planetary caput of lipid & state and chemicals, told CNBC Monday.

West Texas Intermediate futures were up 0.3% astatine $69.42, aft initially rising arsenic overmuch arsenic 1.3% to conscionable beneath $70 a tube earlier Monday, followed by past week's astir 4% decline. Brent crude were trading astir 0.4% higher astatine $74.20.

West Texas Intermediate

The MSCI Asia ex-Japan, a gauge of stocks trading successful Asia extracurricular of Japan, lingered astatine a three-week low, portion currencies typically seen arsenic harmless havens were mixed.

"If it had led to disruption successful lipid supplies from the Russian state, I deliberation what you would person seen is simply a disruption which could person been thing from a mates of cardinal barrels each the mode up to 3.5-4 cardinal barrels," said Standard Chartered's Sinha.

"Now that benignant of disruption adjacent if it's abbreviated word could person truly roiled the markets truly badly," helium added.

On Saturday, Putin vowed to punish anyone who was progressive successful the "armed rebellion," accusing the radical of treason and betrayal.

But erstwhile Prigozhin's forces yet turned back, Kremlin spokesperson Dmitry Peskov said the transgression charges against the Wagner person volition beryllium dropped and that helium volition beryllium granted exile to Belarus, state-controlled outlet TASS reported.

"Obviously this does amusement a level of unprecedented weakness for President Putin," Eurasia Group president Ian Bremmer told CNBC Monday.

"But astatine the aforesaid time, portion Putin was unprecedently tested, determination was not a azygous high-level defection from the Russian military, from the Russian authorities oregon among the Russian oligarchs," helium added. "Anyone that believes that Putin is abruptly is connected the brink of leaving power, besides needs to admit that's not wherever we are."

— CNBC's Audrey Wan contributed to this report.