Ukraine crisis: effect on the world, oil prices highest since 2008

KATHMANDU: MARCH. 8 – The US said that it is considering imposing sanctions on oil imports from Russia. After this oil prices have started touching the sky. This is the first time since 2008 that the price of oil has increased so much.

The price of Brent crude (crude oil) sold in the international market reached $ 139 per barrel. However, then it has fallen slightly to $ 130 per barrel.

The energy market has also been in turmoil amid fears of a supply shutdown following Russia’s invasion of Ukraine.

The effect of the increased prices is also starting to affect the consumers because from fuel to electricity bill of the house has started increasing.

On Monday, there was a slowdown in the Asian stock market. Japan’s Nikkei and Hong-Kong’s Hang Seng indices fell by up to three percent.

The serious impact of Ukraine’s crisis is also being seen on the Indian stock market. On Monday, the Bombay Stock Exchange’s Sensex has fallen by about 1500 points.

On Sunday, US Secretary of State Antony Blinken said the Biden administration and its allies were considering imposing sanctions on oil imports from Russia.

After this, Speaker of the US House of Representatives Nancy Pelosi said that the administration is “considering” introducing legislation to block imports of Russian oil. He also told that the US Parliament can announce 10 billion dollars in aid to Ukraine this week.

Tougher restrictions may be announced

In a letter, Nancy Pelosi said, “The House is currently considering a stringent law that could isolate Russia from the global economy.”

This statement comes at a time when the pressure has increased on the White House and other Western countries to impose stricter sanctions on Russia after the attack on Ukraine. The new sanctions on Russia could potentially have major consequences for the global economy.

Brent crude prices rose by more than 20 percent last week due to the threat of oil prices in global markets following Russia’s invasion of Ukraine.

In recent times, the burden of rising prices has started appearing in the pockets of consumers around the world.

Petrol prices rise

On Sunday, the American Automobile Association said that prices at US petrol pumps had risen 11% in the past week, the highest since July 2008.

According to the Royal Automobile Club (RAC), the average price of petrol has increased by £1.50.

Meanwhile, rising gas prices due to the Ukraine crisis have also raised concerns. It is believed that the annual electricity bill of people in Britain can reach 3000 pounds. Gas prices in Europe and the UK have hit record highs in recent days, amid fears of a shortfall in supplies from Russia.

Companies forced to buy crude oil from Russia

On Sunday, energy giant Shell justified its decision to buy crude from Russia despite the invasion of Ukraine. The company issued a statement saying that the decision to buy fuel at subsidized rates was “difficult”. The company said that it has bought crude oil from Russia on Friday. The company said that it had no choice.

Ukraine’s Foreign Minister Dmitro Kuleba took to Twitter to lash out at energy companies, asking: “Don’t you smell Ukrainian blood from Russian oil?” Oil prices in India have remained stable for the past few weeks. Experts believe that this is due to the elections being held in five states.

According to many market experts, the impact of the Ukraine crisis is visible on the stock market, it will also be reflected in the prices of oil. In the coming time, the price of petrol, diesel and gas in India may increase. And if this happens, the prices of other essential commodities will also be affected.

Companies breaking ties with Russia

After Russia’s attack on Ukraine, global brands are breaking ties with Russia because of the Ukrainian crisis.

Last week, video-sharing app Tik-Tok said it had blocked live streaming and new content in Russia. The company said that this decision has been taken in relation to Russia’s new law to act on “fake news”.

Meanwhile, OTT giant Netflix has also said that it is shutting down its service in Russia due to the invasion of Ukraine.

Visa, Mastercard are also included in the list of Western companies that have stopped operations in Russia.

-BBC (Hindi)