Yesterday, the Vladimir Putin’s threats to invade Ukraine unfortunately resulted in reality and the world is now wondering about what will happen and how the scenario will evolve; both for those who dramatically experience this conflict firsthand, and for the financial markets.
The first implications appeared in the main ones financial centers that they recorded contractions even of some importance. The gasfor example, registered a increase of more than 50% on the Amsterdam market, ie the methane benchmark for continental Europe. The increase is closely linked to the fact that Europe imports 41% of its natural gas consumption from Russian gas pipelines; should Russia decide to close the taps in response to the European sanctions, Brussels should quickly find a solution. The oil pricemeanwhile, keep climbing with one Brent price higher than 2014. The new price increases caused by the Russia-Ukraine clash could do further increase the price at the pump, already high for several weeks, and thus compromise the economic stability of households and businesses. If the conflict leads to an interruption of services, as suggested by Four wheelsthe price of fuel could also double reaching 2.50 – 3 euros per liter; this would be a very heavy scenario with very important repercussions on mobility and post-pandemic economic recovery.
At the moment, the average price detected by Energy Newspaper for petrol in self-service mode it is equal to 1,859 euros per liter, 1,733 euros that of diesel. The “served” price, on the other hand, already exceeds 2 euros per liter for petrol in some pumps and “stops” at 1.9 euros per liter for diesel. Stationary, on the other hand, are LPG and CNG. The spike in the cost of oil and the consequent rise in fuel prices also have an effect on spending, with an increase in transport costs as well as production costs, also changing the prices of products in supermarkets.