Oil price goes through the roof after Ukraine invasion

 

Oil price and Ukraine invasion

The unthinkable did happen, in the end; Europe sees the biggest military conflict since the Second World War and President Putin’s ominous warning against interference is reverberating across the world.

The anxiety is palpable and the stock markets across the world just reflects it.

As the news of the full scale invasion sank in, the price of crude oil crossed the psychologically-crucial $100 mark in the early hours of today.

As the tension between Russia and the West has never been higher since the Cold War, the conflict could get really serious and scary, of course, depending on the President Putin’s ultimate intentions; he said he did not want to occupy Ukraine, something that has to be seen.

Although the West has not spelled out the touch-sanctions that they had been talking about for the past few months, there will be real issues when it comes to implementing they, as they inevitably hurts the Western interest too; President Biden has already acknowledge that was the case.

If Russia is completely cut off from the Western markets, some European nations will find it hard to find alternative sources for oil and gas at such a short notice, as Europe is still in winter. The situation that Germany is in, is a case in point.

Even when there was no war in war, the prices of crude oil went through the roof for the customers across the world; in the current circumstances, it really can gets worse. The cascading effect can be sense when you do your weekly or monthly shopping in a supermarket.

A war in Europe, protracted or not, can make the crisis ten times worse for the consumers. The Western leaders will be forced to address the concerns at the same race that they focus on the crisis in Ukraine.

As for the countries that maintain good relations with both Russia and Ukraine, there will be a serious balancing act to be engaged in without hurting either. The situation faced by Turkey is a classic example faced by countries caught in the middle at times of a serious war.

 

 

 

 

Comments

Popular posts from this blog

European energy crisis: the perfect storm that many did not see coming to a city near us!

Border Conflict between Ukraine and Russia: the energy crisis can only get worse!

CCS: Carbon Capturing and Storage – major challenges remain unsolved