Oil prices continue to experience significant fluctuations driven by geopolitical tensions.
Conflicts in the Middle East and disruptions related to the Russia-Ukraine war are contributing to this volatility, according to a report by global financial services company Moody’s.
Events such as attacks on energy infrastructure and threats to key trade routes have had varying impacts on oil prices.
According to the report, when Russia invaded Ukraine in early 2022, oil prices spiked by 33% within the first ten days.
This surge was driven by fears of severe sanctions on Russia, which is one of the world’s top oil producers.
Similarly, major events affecting large oil producers like Russia or Middle Eastern countries have often caused prices to rise, while issues affecting major consumers like the US or Europe have led to price decreases.
The direction of oil price changes during such events depends on whether markets perceive the risk as a potential disruption to supply or a reduction in oil demand.
The impact on prices varies based on the involvement of specific regions or countries and their share of global oil supply or demand.
The post Oil prices vulnerable to geopolitical shocks appeared first on Energy Live News.
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