Crude Prices will remain above $100 per Barrel amid the Russian-Ukraine conflict

Share Us

489
Crude Prices will remain above $100 per Barrel amid the Russian-Ukraine conflict
25 Apr 2022
6 min read

News Synopsis

EIU in its global outlook report informs that the gravest effect of the Russia-Ukraine conflict on the world economy will be increased commodity prices. Oil prices will remain above $100/barrel for as long as the conflict between the two nations goes on. The effects of sanctions on Russian energy exports and uncertainty surrounding supplies will amplify existing market tightness. Gas prices in Europe will increase by 65 percent this year, after a fivefold rise in the previous year. Europe has limited gas stockpiles, and there are concerns about gas supplies for the 2022/23 northern hemisphere winter season.

EIU’s Global Forecasting Director, Agathe Demarais further said that Europe is decreasing its demand for Russian gas, which will reduce Russian output and put further pressure on supplies. EIU said, "We expect higher commodity prices to fuel global inflation, which will spike to 7.7 percent this year, a 26-year high.” Despite concerns about the impact of the Russia-Ukraine war on their economies, the major central banks around the world are doubling down on their efforts to limit inflation. Russia is also a major producer of several base metals, which includes aluminum, titanium, palladium, and nickel. After spikes in all of these markets last year, prices will remain at peak levels for as long as the conflict continues.

TWN In-Focus