Australia’s resource-heavy stock market had enough support from record-high oil and metal prices to cushion the impact of a global equities sell-off on Monday. But major Asian bourse dropped as much as 3.7 per cent and US futures declined sharply, suggesting a weak session on Wall Street overnight.

Sentiment was drained by fears of an oil price shock if the US imposes sanctions on Russia - which produces about 10 per cent of daily global supply - that would potentially push prices up to $US150 per barrel this year.

The benchmark S&P/ASX200 lost last week’s gains, falling 1 per cent or 72.2 points to 7,038.6. Woodside Petroleum and Santos both reached two-year highs, with Woodside up 9.5 per cent to $34.41 and Santos up 5.3 per cent to $8.17.

Oil prices spiked early Monday morning to 14-year highs of $US139.13 a barrel for Brent crude and $US130.50 a barrel for WTI crude. Copper prices spiked at all-time highs while nickel futures returned to 14-year highs. Gold touched $US2,000 per ounce for the first time in 19 months.

Portfolio manager at Tribeca Investment Partners, Jun Bei Liu, said without the oil, gold, and copper producers, the ASX would have been much worse off.

“The reason Asian markets are down more is because the ASX is actually a very defensive market,″⁣ she explained.

“Quite a big part of our index is resources and without those large resource companies the index would have been down a lot more.”

The sudden jump in oil prices was also forcing the market to work out which sectors would be most impacted.

“As long as the conflict stays as it is, the market will move on quite quickly. The market is repricing all the industries that are going to use a lot of oil, like airlines.”

Qantas dropped 7.9 per cent to $4.53, the biggest one-day fall since 26 June 2020 for the Flying Kangaroo. Flight Centre fell 4.2 per cent and Corporate Travel fell 2.9 per cent.

Gold miners like Ramelius Resources enjoyed gained of 6.7 per cent and Newcrest gained 5.2 per cent to a nine-month high of $27.37.

Gaming stocks like Aristocrat Leisure fell 6.2 per cent while Tabcorp fell 2 per cent and PointsBet dropped 8 per cent to remain near two-year lows. Wesfarmers dropped 1.4 per cent to $48.08.

CSL fell $8.64 or 3.3 per cent after trading ex-dividend by $1.40. Financials dropped with big banks down, insurers facing large flood bills dropping as much as 6 per cent for QBE Insurance. And Magellan Financial Group closed 7.3 per cent lower at a seven-year low of $14.35.

An index reshuffle saw ASX200 departees like Unibail-Rodamco-Westfield falling 9.5 per cent and Block Inc falling 10.3 per cent.