Russia’s invasion of Ukraine could plunge the world into oil and natural gas crisis: report

The full-fledged Russia invasion of Ukraine may have global implications in the natural gas and oil markets, CNBC reported Thursday.

"Ukrainian Foreign Minister Dmytro Kuleba said via Twitter on Thursday that Putin had 'launched a full-scale invasion,' of the country, which he described as 'a war of aggression.' Kuleba called on world leaders to stop the Russian president," CNBC reported. "European gas prices jumped on news of the invasion, while international benchmark Brent crude futures surpassed $100 a barrel for the first time since 2014."

Russia's role as an oil producer will have global ramifications.

"Russia’s invasion of Ukraine represents one of the worst security crises in Europe in decades. It is also expected to have far-reaching implications for the global economy, particularly given Russia’s role as the world’s second-largest producer of natural gas and one of the world’s largest oil-producing nations," CNBC reported. "Indeed, this was even the subject of a rare public rebuke from the International Energy Agency, which called on Russia to increase gas availability to Europe and ensure storage levels were filled to adequate levels during a period of high winter demand."

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On Thursday, The Intercept reported that Russia is working with Saudi Arabia to deliberately drive up prices.

"As Russia ordered troops into Ukraine on Monday, gas prices soared to their highest levels in over seven years. While the media focuses on the conflict in Ukraine, a major cause of the gas price spike has gone overlooked: Moscow’s partnership with Saudi Arabia has grown dramatically in recent years, granting the two largest oil producers in the world the unprecedented ability to collude in oil export decisions," The Intercept reported.

"The Saudi and Russian relationship has blossomed under Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, whose first formal meeting with Russian President Vladimir Putin took place in the summer of 2015. MBS pursued the meeting after then-President Barack Obama declined to meet with him, The Intercept has learned from two sources with knowledge of the matter who were granted anonymity to describe sensitive discussions," The Intercept reported. "Now, as Biden refuses to meet with MBS due to his culpability in the grisly murder of journalist Jamal Khashoggi, the crown prince may again see a friend in Moscow, which is profiting handsomely off MBS’s refusal to increase oil production."

Read the full report.