On Monday, oil prices accelerated their growth after a decline at the end of last week and reached the level of $115 per barrel. The cost of raw materials is rising against the background of the ongoing Russian-Ukrainian conflict, as well as increasing tensions in the Middle East. Today, Russian Deputy Prime Minister Alexander Novak said that oil prices could jump to $300 per barrel if the West refuses Russian oil. As you know, the European Union is going to impose an embargo on oil from Russia in the near future. However, it is worth noting that today Russia is the largest supplier of oil to Europe, which consumes about 500 million tons of oil, of which about 150 million tons, or 30%, are accounted for by Russian products. The country also supplies another 80 million tons of petroleum products to the EU. Novak noted that it is absolutely logical to expect that the rejection of Russian oil will lead to disastrous consequences for the world market. At the same time, it is impossible to replace the volume of Russian oil on the European market quickly, and it will probably take more than one year. In such a scenario, European consumers will suffer, first of all: gasoline, heating and electricity will significantly rise in price. News from the Middle East had an additional impact on the market today. There, the Yemeni Houthis attacked several facilities in Saudi Arabia, including the fuel depot of the state oil company Saudi Aramco. The focus is also on the situation in China, where another jump in the incidence of Covid-19 was noted. Investors are trying to assess whether this news will affect the volume of oil demand.
