Due to Russia’s encroachment on Ukraine, oil and gas prices are constantly rising, and the stock markets have sunk. This sparks fear of a global economic shock. Â
Oil prices reached their highest level in the last 14 years at $139 per barrel, while wholesale gas prices more than doubled for next-day delivery. Â
Petrol prices, amidst warnings of higher energy bills, hit another record high. The price hike came after the US hinted at a ban on buying Russian energy and it looked at other countries to increase the supply. Â
Analysts warned that due to an upsurge in oil and gas prices, the price of everyday items could rise at the fastest rate in the last 30 years. They also said that the UK’s energy bills could be as high as $3000 a year. Â
The war also continues to affect the share markets negatively. The stock exchange London FTSE 100 was more than 2% lower, having its worst week since the start of the pandemic in 2020, while the stock exchanges in France and Germany plunged more than 4% in early trading. Â
The negative impact was also seen on the Asian shares and the Wall Street markets were forecasted to open sharply lower. Â
In an interview with the BBC, Vandana Hari, of oil market analysis firm Vandana Insights, told the BBC, “While the US might just push through a ban on Russian oil imports, Europe can ill-afford to do the same. More worryingly, Putin, with his back to the wall, could turn off gas supplies to Europe, cutting off the continent’s energy lifetime.” Â
A Russian oil trading ban would potentially have a high considerable impact on the global economy and would be a substantial upsurge in response to the invasion of Ukraine.Â
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Edited By : Amisha Rampal
Published By : K. Bindhiya Prarthana
