The dependence on Russian gas has awakened the European leader and the nations to look for an alternative but in the short term, things look bleak for the European powers.
In Fact, the re-sparked interest in the Ukrainian-Russian war has driven up the prices of almost all natural resources,
To make things worse China has reportedly cracked down on rising COVID cases by imposing a strict containment approach,
Yes, COVID still looms around us.
The Russia situation and the China situation have squashed the hopes of the oil demand coming back up,
This has led to the oil prices falling drastically as Brent crude has hit a low of 96.5 USD/ Barrel,
Analysts say Russia’s stance and China’s vow to stick to the COVID-zero policy only look to darken the demand and consumption outlook while quoting,
The market is still dealing with signs of weakness in oil demand from already high prices and the weak economic backdrop in developed markets
On the brighter side sectors like airlines, transportation, automobiles, etc will look to benefit from the current scenario but one would say this sigh of relief is only for the short term,
With the rising raw material costs and rising inflation rates across the globe, ironically for the same reasons of the Russian war and China’s COVID-zero curb, many sectors will still continue to bleed. For now, recession looks like a matter of when rather than a matter of if.
