Both Russia and Ukraine have reached the edge of war. The situation is such that a straight fight can start at any time. Due to the ever-increasing tensions, the crude oil market around the world is also in turmoil. Russia produces 10 million barrels of oil a day, which is about 10% of global demand. In addition, it is the largest supplier of natural gas in Europe. If this supply line breaks down, fuel prices will skyrocket.

Due to lack of supply against demand, the price of crude oil has reached $ 90 per barrel, which is the highest since 2014. According to experts, soon it will also cross the mark of $ 100 per barrel. The oil market gained nearly 2 per cent on Monday. At the same time, European natural gas prices also increased by about 6 percent.

33% of Europe’s natural gas comes from Russia

Nishant Bhushan of consulting firm Rystad Energy says that only the potential threat of war can propel prices up. Many people are leaving public transport and using private vehicles more due to Corona. Due to this the demand has become more. In view of this, American oil companies are gradually increasing production.

The Biden administration is trying to get the nuclear deal with Iran back on track. Iran is facing US sanctions due to this deal hanging in the balance. If this deal goes through, Iran will be able to produce 1 million barrels of oil every day.

Price can reach 100 to 120 dollars per barrel

Scott Sheffield of Pioneer Natural Resources, a Texas oil company, said – if Putin attacks, crude oil prices can reach $100 to $120 a barrel, but if Biden lifts sanctions on Iran, it will cost $10. will decline. At present, there is no supply as much as there is demand in the market, due to which it is certain that the prices will cross $100.

Inflation in America at a record level of 7.5%
The inflation rate in America is currently at a record level of 7.5%. To deal with this, the Federal Reserve has raised interest rates, which is affecting the stock market around the world. In India too, the Sensex fell by 1,747 points and the Nifty by 532 points on Monday. The three main reasons for the latest fall in the market are – expensive crude oil, the meeting of the US Fed Reserve to raise rates and the possibility of a Russo-Ukraine war.

Want to have urgent meeting with Russia

Ukraine has expressed its willingness to hold a meeting with Russia within 48 hours amid fears of a border attack. Ukraine’s Foreign Minister Dmitry Kuleba said, “We have requested that Russia explain why it has intensified military and war preparedness along the border.” Russia ignored this request. On the other hand, Russian Foreign Minister Sergei Lavrov has suggested to Putin that even though the US has rejected Russia’s security demands, we should continue talks with the US and its allies.

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