The sound of war increased the concern, crude oil may cross $100, this will have an effect on India

The situation of war between Russia and Ukraine has increased concern in many countries including India. According to a report, both the countries have reached the edge of war. The biggest concern is that if the war breaks out, there will be huge turmoil in the global oil market. Crude oil prices will cross $ 100 per barrel and its direct effect will be seen in the form of increase in inflation on other countries. Let us know how India will be affected by this.

Oil and gas supply will be affected

Significantly, Russia is the largest supplier of natural gas and its share in crude oil production is also very high. According to the report, Russia produces about 10 per cent of the global demand. Due to the start of war between the two countries, it is obvious that the supply of crude oil and natural gas will be adversely affected and fuel prices will be on fire. Explain that Europe's dependence is more on Russia. More than 40 percent of the gas in Europe comes from Russia. This will have a direct impact on the common man. The effect of increased concerns about the outbreak of war is already visible on the crude oil prices as well as the stock markets. The Indian stock market has also seen a huge decline since the past.

Crude oil at seven year high

Due to the ongoing issues between Russia and Ukraine, the price of crude oil is already skyrocketing. Crude oil prices touched an all-time high of $96.3 per barrel, the highest since 2014. If experts are to be believed, soon they will even cross the $100 mark per barrel. On Monday, the global oil market had registered a gain of about 2 percent. At the same time, European natural gas prices also increased by about six percent. Let us tell you that Russia is the third largest producer of crude oil in the world. The countries of Europe take more than 20 percent of their oil from Russia. In addition, Russia produces 10 percent of the world's copper and 10 percent of aluminum in global production. That is, with the beginning of the war, many problems are going to arise for the European countries.

The situation will worsen due to non-supply

A report said that if the war between Russia and Ukraine starts, crude oil prices could reach $100 to $120 a barrel. There will be a bad effect due to the supply of natural gas. According to experts, due to disruption in this, countries may have to cut power generation drastically. Experts say that due to the Russia-Ukraine war, oil prices will start skyrocketing and inflation may reach its peak. Its effect will be seen in India as well. Let us tell you that due to lack of supply according to the demand, oil prices are increasing and in the event of war it is certain that the prices of crude oil will increase further and even reach beyond $100.

Impact on investor sentiment

The war affects every region and the current situation between Russia and Ukraine is clearly showing its effect on the global markets. Stock markets are likely to fall further as the supply chain is affected during the war. In a war environment, investor sentiments will be affected and there may be a fall in the stock market. Investors are also worried that if a fight breaks out between Russia and Ukraine, then its heat will not be limited to only two countries, but it will have a direct impact on Europe. Not only this, any such confrontation can also bring military superpowers like America and Russia face to face. If this happens, the global economy will be badly affected.