Red hot global oil and gas markets need some settling down to do

Red hot global oil and gas markets need some settling down to do

Global economies have not much time to pick their way through the COVID-19 crisis when they got hit by another – the Russia-Ukraine conflict and the various levels of fallout from it. It could be that this particular disruption could end up causing more damage than what the pandemic wreaked. In the first crisis, the world was united in the fight against coronavirus and overcoming its debilitating effects on the global economy. In the second crisis, the world seems to be dangerously divided. The repercussions from the conflict will affect all countries, in varying degrees. The economic implications are many. However, the focus here is on the biggest source of worry, such as the sudden and steep rise in prices of oil and gas after reaching their record highs since 2008. This happened despite oil and gas supplies having mostly been excluded from sanctions, except by the US and the UK whose imports of Russian oil amount to 800,000 barrels per day. If not, a weakened global economy cannot withstand the boycott of Russian energy supplies. Accordingly, the European countries have taken a reasonable decision based on their national interests. Russia has been keen to ensure its oil and gas