Russia-Ukraine War / Russia fired this special missile on Ukraine for the first time, now India is in tension

Russia-Ukraine War: Tensions between Russia and Ukraine are constantly increasing and so far there has been no pause in this conflict. On November 21, Russia attacked the Ukrainian city of Dnipro with its intercontinental missile RS-26 Rubezh, which not only deepened the conflict between the two countries but also caused a stir in global energy markets. The Ukrainian Air Force has confirmed that the attack was pre-planned by Russia, which is further increasing this tension.

Rise in crude oil prices:

After Russia's attack, the international crude oil market has seen a rise. On November 22, Brent crude futures rose 0.4% to $ 73.09 per barrel, while US West Texas Intermediate crude futures were also trading at $ 69.03 per barrel. The main reason for this increase is being attributed to geopolitical tensions and supply disruption concerns.

Impact on India:

India, which imports most of its energy needs, is under serious concern due to such a rise in crude oil prices. India's oil import bill is already huge and rising crude oil prices can further increase its economic burden. High oil prices can not only increase the trade deficit but also push up inflation, which directly impacts the general public.

Russia, which is India's largest oil supplier, may put India's energy security at risk if there is any disruption in supply. In such a situation, India may need to re-evaluate its energy policy to deal with any kind of disruption in supply.

OPEC+ meeting and supply constraints:

Another impact on the oil market can be from the upcoming meeting of OPEC+. The Organization of Petroleum Exporting Countries (OPEC) and their allies led by Russia will meet on December 1, in which plans to increase production may be discussed. Although OPEC+ had earlier planned a modest increase in production in 2024 and 2025, the decline in global oil demand and efforts by other countries to increase production have made this plan challenging.

Impact of US oil reserves:

Crude oil reserves in the US have increased by 5,45,000 barrels, further affecting oil prices. This increase surprised the market as analysts had anticipated a relatively small increase. This unexpected increase has further complicated the oil market situation, which may also affect global energy supply and prices.

India's energy challenge:

Amid the Russia-Ukraine war and global oil market fluctuations, the situation has become even more challenging for energy import-dependent economies like India. Rising oil prices will not only increase energy expenses but may also affect India's economic stability. India needs to take strategic steps to strengthen its energy security and supply chains.

It will be important to keep an eye on the OPEC+ meeting and global geopolitical events in the coming weeks, as these events can play an important role in determining the direction of the oil market.