America and European countries have imposed strict sanctions on the Russian banking system. These countries are also opposing Russian Oil. Banks, ports and transporters around the world are trying to distance themselves from Russian oil. This threatens the biggest oil crisis since the 1970s.
IHS Markit vice-chairman Daniel Yergin has said Russia’s attack on Ukraine could lead to the world’s biggest oil crisis since the 1970s. CNBC has given this news.
“It could be the biggest oil crisis since the Arab oil ban in the 1970s and the Iranian Revolution,” Yergin said. In the 1970s, both events led to a major oil crisis in the world.
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So far, American and European countries have not imposed sanctions on Russian oil, but Yergin says that the supply of Russian oil in the international oil market is likely to decrease. He said that Russia exports 7.5 million barrels of oil and processed goods daily.
“There seems to be a huge problem in terms of logistics. It is a supply crisis. It can become a big problem like the 1970s,” he said. He said talks between the oil industry and the countries that imposed sanctions on Russia seem to be deteriorating.
Yergin said that the share of NATO countries in Russia’s oil exports is about 50 percent. This is going to have a huge impact. The OPEC Plus group said on Wednesday that they would maintain production at current levels. These countries are supplying about 4,00,000 barrels daily.
Since the start of Russia’s attack on Ukraine, there has been a big jump in oil in the global market. The price of Brent crude oil had reached $ 118 per barrel. However, now it has softened a bit. At the beginning of this year, the price of crude was $ 77 a barrel. The rising price of crude can create a big problem for many countries like India.
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