Russian President Vladimir Putin has sent troops to two regions of eastern Ukraine, declaring them independent states. The price of the product has risen further amid fears that it could disrupt the global supply of crude oil.
Russian President Vladimir Putin on Monday recognized Donetsk and Luhansk, two regions in eastern Ukraine controlled by pro-Russian separatists, as independent states. He later ordered the army to be sent there. As a result, the price of fuel oil has gone up since Tuesday morning. The global stock market index has been reading since yesterday.
Brent crude rose to 98.21 a barrel (42 US gallons or 159 British liters) in early trade today, the highest in six years. The price of West Texas Intermediate (WTI) crude oil in the United States has also risen to 97.82 per barrel.
Meanwhile, the United Kingdom and several of its Western allies have expressed concern over the Russian president's order to send more troops to the Ukrainian border and to recognize the two territories of eastern Ukraine as independent states. They have threatened to impose sanctions on Russia. In that case, Russia could retaliate by rushing to export oil and natural gas to the world market. Russia is the second largest exporter of fuel oil in the international market. Saudi Arabia is the largest exporter of oil.
Su Trin, of Manuel Life Investment Management, said the rise in fuel prices could have a "significant effect" on border tensions. He said sanctions on Russia could reduce the supply of crude oil and natural gas to the international market, which would have a "significant impact on the world economy".
Western powers believe Vladimir Putin's recognition of rebel-held eastern Ukraine has paved the way for Russian troops to formally enter eastern Ukraine. The two self-proclaimed republics of Donetsk and Luhansk are home to Russian-backed rebels who have been fighting Ukrainian forces since 2014. Russia's move has virtually weakened the path to a ceasefire and peace talks in the region.
Meanwhile, Russia-Ukraine tensions are having a negative impact on global stock markets, such as fuel oil. Meanwhile, the Nikkei 225 index of the Tokyo Stock Exchange of Japan fell more than 2 percent and the composite index of the Shanghai Stock Exchange of China fell 1.4 percent. Earlier in the day, the S&P 500 index of the New York Stock Exchange fell 1.6 percent, the Dow Jones index 1.4 percent and the Nasdaq 100 index 2.2 percent.
In addition, the FTSE 100 index of London fell 1.24 percent and the FTSE 250 index 1.64 percent, the EX of the Netherlands 1.22 percent, the CAC 40 index of Paris 1.61 percent and the DAX of Frankfurt 2 percent.
Song Seng Un, an economist at CIMB Private Banking, says investors are now fearful of a Russia-Ukraine war. In that case, there is a risk of disruption in oil supply as well as increase in transportation costs, he said.
Mizuho Bank's head of economics and strategy, Vishnu Varthan, said it was unclear whether Russia's move would trigger a full-blown conflict. If that happens, the West will be the first to impose sanctions on the country.
The price of a barrel of fuel oil recently crossed 90. In all, the price of the product has risen 20 percent so far this year. And it has increased by 70 percent compared to this time last year. In light of the current situation, US multinational investment bank JPMorgan is predicting that the price of fuel oil could rise to 125 per barrel in the second half of this year and to ১৫ 150 in 2023. Earlier, in 2006, the price of fuel oil rose to 146 per barrel, the highest ever.
Western powers believe Vladimir Putin's recognition of rebel-held eastern Ukraine has paved the way for Russian troops to formally enter eastern Ukraine. The two self-proclaimed republics of Donetsk and Luhansk are home to Russian-backed rebels who have been fighting Ukrainian forces since 2014. Russia's move has virtually weakened the path to a ceasefire and peace talks in the region.
Meanwhile, Russia-Ukraine tensions are having a negative impact on global stock markets, such as fuel oil. Meanwhile, the Nikkei 225 index of the Tokyo Stock Exchange of Japan fell more than 2 percent and the composite index of the Shanghai Stock Exchange of China fell 1.4 percent. Earlier in the day, the S&P 500 index of the New York Stock Exchange fell 1.6 percent, the Dow Jones index 1.4 percent and the Nasdaq 100 index 2.2 percent.
In addition, the FTSE 100 index of London fell 1.24 percent and the FTSE 250 index 1.64 percent, the EX of the Netherlands 1.22 percent, the CAC 40 index of Paris 1.61 percent and the DAX of Frankfurt 2 percent.
Song Seng Un, an economist at CIMB Private Banking, says investors are now fearful of a Russia-Ukraine war. In that case, there is a risk of disruption in oil supply as well as increase in transportation costs, he said.
Mizuho Bank's head of economics and strategy, Vishnu Varthan, said it was unclear whether Russia's move would trigger a full-blown conflict. If that happens, the West will be the first to impose sanctions on the country.
The price of a barrel of fuel oil recently crossed 90. In all, the price of the product has risen 20 percent so far this year. And it has increased by 70 percent compared to this time last year. In light of the current situation, US multinational investment bank JPMorgan is predicting that the price of fuel oil could rise to 125 per barrel in the second half of this year and to ১৫ 150 in 2023. Earlier, in 2006, the price of fuel oil rose to 146 per barrel, the highest ever.
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