Today, on the 31st, the US President with Emir Sheikh Tamim bin Hamad Al Thani of Quatar at the white house to discuss matters related to the global energy market, with special emphasis being placed on potential substitutes to Russian natural gas in the event of a Russian invasion of Ukraine.
According to the article, Russia supplies 40% of Europe's natural gas, which means that any sanctions triggered by the possible invasion of Ukraine would lead to oil and gas shortages throughout the world, which would therefore lead to energy prices creeping higher. There appear to be many that echo these sentiments, as Natural Gas Futures prices surged in weeks prior, signaling market fears regarding potential conflict.
The US may have an intention to secure a substantial amount of natural gas from Quatar for the aforementioned European nations, in order to lessen the potential economic ramifications of a reduced natural gas supply from Russia.
This was a very informative synopsis to read. I never consider the ripple effect that the conflict between Russia and Ukraine could cause to the rest of the world. With gas prices already being at a price the most are unhappy with, a further increase due to this conflict could have a severe negative impact on the economy.
ReplyDelete