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Biznextindia : With the Russian attack on Ukraine entered the 13th day, global Crude Oil prices have continued to surge even as the benchmark Brent Crude oil prices eased to USD 125 a barrel on Tuesday after touching USD 130 a barrel a day before.
While the Brent Crude is trading at USD 125.65 a barrel, the WTI crude also eased to USD 121.24 a barrel after breaching USD 125 a barrel on Sunday.
Meanwhile, analysts have predicted that the worst is yet to come for the crude oil prices as the US and its European allies considering a ban on Russian Oil and Gas. In that case, crude oil prices could breach the USD 150 mark, even soar to USD 200 a barrel as global oil market will cut off from the Russian supply.
A Ban on Russian oil will have severe impact on global crude oil prices as compared to the sanctions on Iran and Venezuela as Russia exports around 5 million barrels per day (bpd) and 2.8 million bpd.
According to an analysis by ‘Bank of America’, a ban on Russian crude would create a supply deficit of 5 million or more bpd in the global crude oil market, which would push the prices to USD 200 bpd.
A ban on Russian oil and gas is likely to have minimal impact on India’s oil import as India sources around 1% of its oil total oil import from Russia. But, higher crude oil price could significantly raise India’s oil import bill, which could jeopardise India’s fiscal calculations.