Russia-Ukraine Conflict: Crude Oil Crosses $100 in International Market
Crude oil prices have crossed $100 in the international market after Russian President Vladimir Putin announced an attack on Ukraine on Thursday morning. After the year 2014, it has reached its record high in the last eight years. The Russian attack on Ukraine is expected to hamper the import and export of petroleum products. The reason for this is that Russia is the largest producer of petroleum products in the whole world. This is the reason that after the start of Russia's war with Ukraine, its direct effect is visible on the price of crude oil.
Russia is largest supplier of oil and gas
Let us tell you that Russia is the largest oil-producing country in the world. Generally, it sells crude oil to refineries of European countries. Along with this, Russia also supplies natural gas to European countries and Russia is the only country in the world that supplies natural gas to European countries. According to a report, Russia alone supplies about 35 percent of the natural gas needed by European countries.
However, because of the fear of Russia's attack on Ukraine, the prices of crude oil started increasing in the international market since Tuesday, two days ago. Global crude oil standard Brent crude on Tuesday reached close to $100 a barrel on fears of an attack on Ukraine and Western sanctions on Russia. Russia is the largest exporter of natural gas and the second-largest exporter of oil.
India is dependent on Russia for crude oil and natural gas
At the same time, Moody's Investor Service Managing Director Michael Taylor believes that although the Russo-Ukraine war will have a positive impact on some exporters in the Asia-Pacific region, its impact will be negative for a large number of purely energy importers. However, the relief is that many Asian economies have long-term supply contracts for LNG, he said. This will reduce the impact of spot price fluctuations. As far as India is concerned, it imports 85 percent of its total crude oil requirements while half of its natural gas requirements are from Russia.