The war in Ukraine started by Vladimir Putin is already causing serious economic consequences internationally, and also in Spain. Proof of this is the price of oil, which has skyrocketed after the start of the conflict. This Monday, the barrel of Russian crude has risen 35% and It trades around 126 dollars after having reached 138 last night, a maximum since 2008, in a moment of panic due to fear of the difficult supply due to the war. In addition, it is feared that the rise could be further triggered by the possibility that Russia’s exports will be blocked.
Thus, the gasoline was at 1.59 euros per liter, it has already exceeded 1.70 euros, and experts and analysts point out that this increase will go further, reaching two euros per liter, which increases uncertainty in the face of the increase in inflation already runaway by the invasion of Ukraine. For its part, diesel, which was at 1.47, is already at almost 1.60 euros. They are increases around 5% in a week after a year in which they already rose 29%.
In this sense, although the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has affirmed that Spain receives the disturbance caused by the invasion of Ukraine by Russia with a “very solid” starting position, has warned that “obviously” it will affect the economy. That is, he has warned that the war, to the extent that it additionally impacts oil and gas prices, can make “the disturbance” that existed before more persistent. For its part, the European Union will present on Tuesday a set of measures to reduce its dependence on gas and oil, according to the European Commission on Monday.
The keys to the EU plan: diversify supply, accelerate investments in renewables and improvements in energy efficiency
Von der Leyen has confirmed that this package of measures will have three main “pillars”: diversify the supply of fossil fuels to reduce dependence on Moscow, accelerate “massive” investments in renewable energy and drive improvements in energy efficiency. “We have to free ourselves from Russian gas, oil and coal,” the German emphasized, later explaining that the search for other gas and liquefied natural gas (LNG) suppliers will also have to take into account that the new structure is also “compatible” with hydrogen.
Since February 24, when Russia started the conflict, North Sea crude has climbed more than 34% and is currently approaching its all-time highs, above $146, reached in early July 2008. This new rise in Brent comes precisely after the United States said this weekend that it is analyzing with the EU to ban the import of oil from Russia, in another attempt to suffocate the Russian economy. It has also had an influence that the Russian government has made “last-minute demands” on the US in the “almost finalized nuclear agreement with Iran”, according to analyst Jeffrey Halley of the digital investment platform OANDA.
Halley also points out that there is also “not much capacity” within the Organization of the Petroleum Exporting Countries (OPEC) and its partners to increase their production immediately, although they would have the potential to pump Saudi Arabia and the United Arab Emirates. The International Energy Agency (IEA), based in Paris, states for its part that “Russia’s attack on Ukraine has highlighted Europe’s dependence on Russian natural gas.” russia represented about 45% of gas imports of the EU in 2021 and almost 40% of its total gas consumption.
Source: Lasexta
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
