Russia Ukraine Conflict / Crude oil caught fire due to Russia-Ukraine conflict, Brent crude price crossed $100 for the first time

Zoom News : Feb 24, 2022, 11:50 AM
After the ongoing conflict between Russia and Ukraine and the announcement of military action by Russian President Vladimir Putin, where on one hand the stock markets around the world have collapsed, on the other hand the prices of crude oil have also caught fire. On Thursday, the price of Brent crude has crossed $100 per barrel for the first time. For the first time in 8 years, the price of Brent crude has reached this record level.

President Putin gave this big threat

Let us tell you that President Putin has ordered military action in Ukraine. Putin has said that if Ukraine does not back down, there will be war. Putin threatened the Ukrainian army to lay down arms as soon as possible, otherwise the war could not be avoided. Putin further said that if any other country comes in the middle, then there will be retaliation against it too.

Russia is the third largest oil producer

Significantly, Putin's declaration of war has raised fears of disruption in energy exports. Let us tell you that Russia is the third largest oil producer in the world, which mainly sells crude oil to European refineries. The countries of Europe take more than 20 percent of their oil from Russia. In addition, Russia produces 10 percent of the world's copper and 10 percent of aluminum in global production.

Oil and gas supply will be affected

Russia is the largest supplier of natural gas and has a significant share in crude oil production. According to a report, Russia produces about 10 percent of the global demand. Due to the start of war between the two countries, it is obvious that the supply of crude oil and natural gas will be adversely affected and fuel prices will be on fire. Explain that Europe's dependence is more on Russia. More than 40 percent of the gas in Europe comes from Russia. This will have a direct impact on the common man.

The situation will worsen due to non-supply

In a report released recently, it was said that if the war between Russia and Ukraine starts, then crude oil prices can reach from $100 to $120 per barrel. There will be a bad effect due to the supply of natural gas. According to experts, due to disruption in this, countries may have to cut power generation drastically. Experts say that due to the Russia-Ukraine war, oil prices will start skyrocketing and inflation may reach its peak. Its effect will be seen in India as well. Let us tell you that due to lack of supply according to the demand, oil prices are increasing and in the event of war it is certain that the prices of crude oil will increase further and even reach beyond $100.