Consumers will pay higher prices as Ukraine war persists: Helima Croft
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According to an energy expert, consumers should be prepared for higher prices as Russia’s war in Ukraine continues and global disruptions continue.
Energy markets have been impacted by the conflict in Ukraine after Russia invaded in February. driven up the price of wheat.Russia and Ukraine are two of the top wheat exporters in the world.
Helima Croft from RBC Capital Markets, Global Head of Commodity Strategy, stated that “if people believe it is important, or if people think this is a security crisis for the future generation, then we should consider what sacrifices they are prepared to make in order to defend these values.”
Washington and its allies imposed harsh sanctions on Russia including those on energy exports. These could result in inflation.
“What price are consumers willing to pay the West for the principle that you can’t invade sovereign nations?” [and]”Remove the European security architecture?” “Remove the security architecture in Europe?” she asked.
CNBC’s She said that “consumers simply need to prepare for higher costs, and there must be that conversation between citizens.” “Capital Connection”On Monday
Middle East Support?
Croft stated that the Biden administration was trying to get countries like the United Arab Emirates or Saudi Arabia to increase their oil production, but it is being met with resistance.
They are basically saying that we have security issues. “We need a partnership to the United States. We need to know you are here and you will stand with us,” Croft stated. He also said that if the United States were to increase energy supplies, it would endanger the OPEC+ relationship, which has worked well since 2016.
Although she stated that the Middle East oil producers are equipped with “back channels”, they have no way of calling Russia. It’s not known which side these countries fall on.
Croft expressed concern about the U.S.’s commitment to the region, and the limited energy reserve, ahead of the meeting with OPEC members this week. This is despite the fact that the sector has seen a decline in investment since 2020.
Crude oil is available in quantities of 2 to 2.5 million barrels daily, with very little spare capacity. She also said that Qatar is the major gas supplier and supply has “largely exhausted”
Croft stated, “If you have an immediate need for gas or if Europe is dependent on Russian gas, then there’s not much cargo that can provide it immediately.”
She stated, “That is why the Germans have been so stubborn on this matter.”
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