Effects of war on Brent oil
How the war between Russia and Ukraine has affected Brent oil is one of the big questions investors follow in global economic news. The effect of the war between Russia and Ukraine on Brent oil continues to be reflected in prices. The impact of the war caused fluctuations not only in stock markets but also in commodities. The reflection of rising oil, foreign exchange and gold markets on petrol prices continues to negatively affect life. The Russian invasion of Ukraine has manifested itself as an increase in the price of fuel oil in almost every country in the world.
With the effect of increased sanctions coupled with war and the pandemic, world markets are looking quite mixed and the markets perception of risk is constantly changing. The destination of world economies is among the topics of interest. With the growing tensions between the NATO countries, Russia and Ukraine, the price of crude oil per barrel has increased.
Shell and Equinor, a major oil and gas company in Russia, also said they would exit their joint ventures and projects in Russia. BP has announced it will sell its 19.75% stake in the Russian oil company.
Brent oil prices
The price of Brent oil does not stay constant in the news streams, which are quite mixed. The removal of Russia from the Swift system by some countries, sanctions on the Central Bank of Russia, declarations of military aid to Ukraine and Russia's tendency to use its nuclear weapons continue to confuse the markets even more.
As the dollar exchange rate rises, energy prices rise, costs rise, etc. Factors like these are reflected in consumer bills. In addition to these, the effect of the war on Brent oil; rising prices, but may involve raising interest rates to control inflation. According to experts, the increase in oil prices will support the increase in sanctions against Russia.
Brent oil and Russia
Russia, one of the world's largest oil producers, satisfies 10% of the world's oil needs. If Russia stops its oil exports, world markets will fall into a very difficult situation. According to experts, this situation is that inflation, which is high as a result of the pandemic, will rise even more.
Oil prices saw their highest level in 7 years as tension between Russia and Ukraine followed the news flow. The impact of the war on Brent oil continues to be reflected in the financial markets.
If this article is helpful to you, you can check out our Academy videos to learn more about the Forex world.
Brent oil, which saw its peak in the last 8 years with the effect of the war in February and closed above $100, continues to rise in March without slowing down. Heavy economic sanctions have sent the price of Brent oil up 10% in the past month.
