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Oil prices jump as tensions between Russia and Ukraine escalate


On Saturday, January 22, 2022, the oil-and gas terminal at Port of Odessa (Odessa), Ukraine was opened.

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Russia is estimated to have 150,000 troops at its Ukrainian border, while the Biden administration stated last week that as much as 7,000 troops were added.

The military tensions have sparked concerns that Russia may be preparing to invade Ukraine, triggering fears of a repeat of the Kremlin’s illegal annexation and occupation of Crimea in 2014.

The price of crude oil has risen to $90 per barrel, an increase more than 20% in this year’s prices and an increase more than 80% from the start of 2021. However, these gains can be explained by other factors, such as tight supplies.

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Katrina Ell (senior APAC economist, Moody’s Analytics) stated that oil prices have been affected by geopolitical tensions adding $10 to $15 to each barrel.

“So, if we see tensions increase,” [causing]Many supply disruptions of Russia’s oil & gas supplies will then add to the upward pressure on oil prices, and then it really hurt Asia’s largest economies both production-wise and consumer-wise,” she stated to CNBC’s Squawk Box Asia on Tuesday.

Ell also stated that net oil importers make up the majority of Asia’s biggest economies.