Threats Rising As Russia Plans To Invade Ukraine

A Russian invasion of Ukraine risks adding further supply shock to Covid-19, driving increasing consumer costs at a time when Australians are already paying historical prices at the pump.

On Friday, as Russia’s forces gathered near its border with Ukraine, US National Security Advisor Jake Sullivan warned that “an invasion could start at any moment on the order of Vladimir Putin and can make the oil prices go up on a historic spike.

Over 100,000 Russian troops have gathered on the Ukrainian border. However, Russia has consistently rejected any plans for an assault.
Last November, troops began to amass in considerable numbers, bringing with them more grave warnings about Russia’s intentions.
Oil prices have already risen for eight weeks in a row, according to CommSec senior economist Ryan Felsman, amid market expectations that demand will surpass supply as the global economy recovers from the Omicron disruptions.

Experts predict that Russia’s invasion of Ukraine will raise oil prices even higher, either triggering another Bitcoin crash or highlighting what investors appreciate about it.

Last week, the International Energy Agency revised its crude oil demand in 2022, predicting that it will hit an all-time high.
“OPEC and its allies (OPEC+) also cautioned that, as foreign travel picks up, world oil consumption could exceed demand predictions this year,” Mr. Felsman said on Monday.
“And escalating regional tensions in Eastern Europe could be the key stimulus needed to justify crude oil’s possible climb above US$100 a barrel,” says the report.
Crude inventories, which are already near seven-year lows, may be strained as a result of this.”
While US President Joe Biden and Russian President Vladimir Putin did speak over the weekend, starting up diplomatic talks, oil speculators are concerned that a hypothetical Ukraine invasion may destabilize crude supply in Europe, prompting US retaliation.