The tension between Russia and Ukraine is showing no signs of decreasing. Now Russia has further intensified its ongoing attack on Ukraine. On November 21, when Russia attacked the city of Dnipro in Ukraine with the intercontinental missile RS-26 Rubaz. This incident not only deepened the conflict between the two countries, but also created a stir in the global energy markets. The Ukrainian Air Force has confirmed that Russia had carried out this attack in a pre-planned manner.
Crude oil prices rose
After this attack, there was a rise in the prices of crude oil in the international markets. On Thursday, Brent crude futures rose 0.4% to $ 73.09 per barrel, while US West Texas Intermediate crude futures were also trading at $ 69.03 per barrel. Geopolitical tensions and concerns about supply disruptions boosted prices.
What will be the effect?
Rising oil prices are a matter of concern for energy import dependent countries like India. India imports most of its energy needs, which is directly affected by fluctuations in the global oil market. High prices of crude oil can not only increase the trade deficit but can also increase the inflation rate. Russia is India’s largest oil supplier, so any disruption in supply can have a deep impact on India’s energy security.
Another impact on the oil market may be from the upcoming meeting of OPEC+. The Organization of Petroleum Exporting Countries (OPEC) and its allies led by Russia may postpone the plan to increase production in the meeting to be held on December 1. OPEC+ had previously planned a modest increase in production in 2024 and 2025, but declining global oil demand and production increases by other countries have made this plan difficult.
Why did India come under tension?
The increase of 5,45,000 barrels of crude oil reserves in America is also affecting the prices. This reserve has reached 43.03 crore barrels. Analysts had expected a lower increase than this, but the unexpected increase in storage has made the market situation more complicated. The Russia-Ukraine war and recent developments in the oil market could have a major impact on global energy supplies and prices. This situation can further increase economic challenges for countries like India. It will be important to keep an eye on the OPEC+ meeting and geopolitical events in the coming weeks.
