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What Analysts From ING to Eurasia Are Saying on Ukraine and Oil

  • Crude soars after Russia attacks targets across Ukraine
  • Analysts say oil prices will stay volatile with more upside
Updated on

Brent crude surged past $100 a barrel for the first time since 2014 as Russian forces attacked cities across Ukraine in a dramatic escalation. That’s raising the alarm that crude could keep shooting higher, adding inflationary pressure to the global economy. Here’s what analysts have to say about the Russia-Ukraine crisis and the impact on oil.

The U.S. and Europe will almost certainly respond in the coming hours and days with a far-reaching package of sanctions, Eurasia Group analysts said in a note. Given the severity of the Russian actions, we expect Western policy makers to go beyond their worst-case scenario plans, which puts Russia’s expulsion from the SWIFT financial messaging system in play. The Nord Stream 2 pipeline will be sidelined indefinitely. Oil and gas prices will rise significantly, reinforcing inflationary pressures and weighing on financial markets and global growth. While Western governments probably will exempt energy transactions from sanctions, the blizzard of new restrictions will force many traders to be exceedingly cautious in handling Russian barrels.