Soaring oil prices: Ukraine crisis could be a ‘seismic event’ for the market, analyst warns | World | News
He said: “Energetically, this could be a seismic event.”
Mr Flynn also argued that, in a rush to get rid of fossil fuels, European countries had “become more dependent on Russia as a major source of energy”.
The comments come as West Texas Intermediate and March Brent reported the price of oil rose to $83.82 and $86.06 a barrel respectively.
The price of oil is directly linked to the cost of wholesale fuel, meaning motorists will dip deeper into their pockets as petrol prices could rise
Russia has started moving tanks and other military equipment from bases in the Far East to Ukraine, according to The Wall Street Journal on Friday.
Additionally, a cyberattack on Ukraine sparked new war fears as a number of Ukrainian government websites were temporarily unavailable.
Ukrainian Foreign Ministry spokesman Oleg Nikolenko told The Associated Press that while it was too early to identify a culprit, he had little doubt that Moscow was involved.
He said: “There is a long record of Russian cyberattacks against Ukraine in the past.”
READ MORE: Russia fires warning shot at NATO over ‘inadmissible’ troop presence
He said they were starting to “perceive COVID as endemic”, implying that they were “learning to live with COVID rather than imposing sporadic lockdowns”.
However, the industry is still concerned about the possibility of global political instability affecting oil production and prices.
Robbie Fraser, global director of research and analysis at Schneider Electric, identified Libya, Iran and Kazakhstan as problem areas in a note.
He said: “Geopolitics and unforeseen disruptions have added price support, at least in the short term.
“Unrest in countries such as Libya and Kazakhstan has caused large, but likely temporary, output losses in recent weeks as the chances of a breakthrough around a renewed Iranian nuclear deal have once again dimmed. “
Political instability between Russia and Ukraine could not only destabilize the region, but also drive up the price of oil and affect production.