Ukraine War’s Long Term Effect On Oil Price

With the war dragging into the third month, WTI has stayed above $100/bbl. This is even with the disruption of world trade by China locking down major industrial Chinese cities. There are signs the EU will ban Russian oil and thereby sealing the fate of high oil for months to years. But the Russian war strategy says it more explicitly, Putin is in it to win. He’s dragging in more cannon fodder, war materiel, and propaganda to get the Russian masses to get behind the Z. In Russian held Ukraine, they are changing road signs from Ukrainian to Russian, and forcing the people to use Russian rubles. The signs are there for a long drawn out war. That means we can count on high oil likely well into 2023 and likely 2024.