Russia Ukraine conflict skyrocket oil price - Why you are interested in getting gas as soon as possible: tensions between Russia and Ukraine could skyrocket oil prices by 76%.
The price of gasoline has been more expensive than ever for weeks, and tensions between Russia and Ukraine could take it to new all-time highs.
The drums of a war with Russia are already ringing in Ukraine. At the border there are 100,000 Russian soldiers deployed, the US has already ordered the evacuation of part of its embassy personnel and many Ukrainians have already prepared an action plan for an invasion such as the one in 2014.
The implications of this geopolitical earthquake are numerous and at all levels, they even affect how much it will cost you to pour gasoline, and no matter how far the conflict occurs, Spain is not saved from the shock wave.
In the coming weeks, the price of oil could skyrocket 76% due to tensions between Russia and Ukraine, JPMorgan has warned.
Russia Ukraine conflict skyrocket oil price
This could lead the price of gasoline to break new records.
"The latest geopolitical tensions between Russia and Ukraine increase the risk of a significant increase this quarter," JPMorgan economists Joseph Lupton and Bruce Kasman point out in a report sent to their clients.
The price of Brent's barrel right now is in the vicinity of $ 87, something not seen since 2014, but could increase much more, to $ 150 per barrel, according to JPMorgan's calculations. Goldman Sachs also predicts that the increase in crude oil will reach $ 100.
Because of the elevated risk of a power outage.
Tensions between Russia and Ukraine could lead to a disruption in oil supply chains, leading to an increase in the price of Brent oil for one or two quarters.
If, for example, the cut were 2.3 million barrels per day in oil production, the global supply would fall by 2%, according to the bank's calculations.
The impact of Russia Ukraine conflict skyrocket oil price
Moreover, the impact of this cut on the world economy would be such, it could cause a cut of 1.6% in world GDP.
Because of the substantial risk of a power outage.
Tensions between Russia and Ukraine could lead to a disruption in oil supply chains, leading to an increase in the price of Brent oil for one or two quarters. If, for example, the cut were 2.3 million barrels per day in oil production, the global supply would fall by 2%, according to the bank's calculations.
Moreover, the impact of this cut on the world economy would be such, it could cause a cut of 1.6% in world GDP.
The price of liquid fuels, for example, soared 45.5% year-on-year in December. If gasoline or diesel is much more expensive than before, the transport of products will also be, and all those companies that depend on this energy to produce will suffer a higher cost, and if producing is more expensive, sales prices also rise.
Chain reactions on Russia Ukraine conflict skyrocket oil price
This chain reaction explains why the rise in prices affects not only oil, but also food, oil or electricity, whose production or transport requires pulling this source of energy.
The problem of the high inflation suffered in recent months is how it weighs in the consumer's pocket. It is food and energy, goods of first necessity, where prices rise the most, which reduces the purchasing power of Spaniards at a critical moment for the economy.
Now, the situation could get even worse. According to JPMorgan's calculations, the conflict in Ukraine could shoot global inflation to 7.2% in the first half of 2022.
