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Not only the Russo-Ukrainian war, but also the rise in oil prices; Will the situation get worse now?

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Russia’s attack on Ukraine has raised suspicions around the world about oil prices. The skyrocketing price of crude oil has begun to affect the pockets of the common man. In this context, it is important to know whether Russia-Ukraine alone is responsible for the rise in global oil prices. There are reasons other than the Ukraine crisis.

The European Union’s talks on the attack on the Saudi oil plant and Russia’s imposition of sanctions on crude oil have led to a surge in oil prices. Top oil producer Saudi Arabia has warned that attacks by Yemeni rebels on state oil installations pose a “direct threat” to worldwide supplies. The Saudi statement was enough to raise oil prices.

Brent North Sea crude rose 6.1 percent to $ 114.55 a barrel, while WTI rose 5.5 percent to $ 110.48. Commerzbank analyst Kirsten Fritz said before the Saudi remarks: “Oil prices have risen significantly since the start of the new trading week.”

“The reason for the rise in oil prices is that the European Union is considering imposing a ban on oil imports from Russia,” he said. EU foreign ministers have met for talks with countries that have imposed sanctions on Russia’s oil. However, Germany is reluctant to take this step because of its over-reliance on Russian gas. Meanwhile, Russian spokesman Dmitry Peskov warned that the embargo on its oil was “a decision that will affect everyone.”

Drone hit

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Crude oil prices have risen even after Yemeni rebels attacked oil giant Saudi Aramco’s refining plant. Susannah Streiter, a senior investment and market analyst at Hargreaves Lansdowne, said: “As the war continues in Ukraine, there is another long and protracted conflict over oil prices. It is Saudi Arabia by Houthi rebels.

“This is officially a temporary issue, but it still affects Saudi Aramco’s commitment to increase production in the coming years,” he said. No casualties were reported in drone and missile strikes carried out by Iranian-backed Huthi rebels in Yemen over the weekend.

The Saudi energy ministry said the drone strike on the YASREF refinery in the industrial city of Yanbu, on the shores of the Red Sea, “caused a temporary reduction in refinery output, which would be offset by inventory.”

The Saudi-led military coalition, which supports the Yemeni government, says it has intercepted and destroyed ballistic missiles and drones launched in Jizan and other parts of the state, causing “damage” to several sites.

Saudi Arabia, meanwhile, has issued a warning that could raise concerns about oil prices. The Saudi Foreign Ministry has said that Saudi Arabia will “take no responsibility” for the loss of oil supplies in light of the Houthi attack. Saudi Aramco on Sunday reported a 124 percent increase in annual net profit due to rising oil prices. Rising oil prices are pushing up inflation around the world. As a result, central banks are being forced to raise interest rates, which experts say could hamper the recovery of the economy.

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