The situation in Russia and Ukraine continues to heat up, and oil price risk volatility intensifies

Affected by recent geopolitics, the volatility of crude oil continued to increase at the end of February, mainly due to concerns about the deterioration of the situation or the risk of energy supply. Because Europe relies on Russia for 30% of its crude oil and 40% of its natural gas imports, if there is a problem with energy supply, other countries cannot effectively make up for it in the short term.

The current Iraqi energy minister said that the current crude oil market is in balance with supply and demand, and there is no need for OPEC+ to increase oil production faster; the research report will be received on March 7, and then the next move in OPEC+ can be decided. Therefore, in the context of the current high oil prices, the current focus of the market is still on the impact of the situation in Russia and Ukraine on the crude oil supply side, and whether the later EU sanctions will affect Russia's crude oil exports.