SAN FRANCISCO, Calif. (KRON) - Financial experts say the Russian invasion of Ukraine could lead to a further rise in gas prices since Russia is the third-largest exporter of oil.
“These are global markets so if there is pressure on prices it ripples across the world so we would see an increase in gas prices and hopefully that will be minimized by the fact we haven’t imposed sanctions on Russian energy exports. It also depends on what Russia decides to do. They may decide to hold back on some of those exports to keep the market tighter than it might be otherwise,” Gary Schlossberg said.
But rising prices may also hit grocery store shelves with increases in bread and bakery products, especially since both Russia and Ukraine are big exporters of grains.
“Food prices have already gone up and we can expect them to go up further, the ports around the southern part of Ukraine near the black sea have been disrupted so we won't see the supply we expected to see in the next couple of weeks or the next couple of months,” Schlossberg said.
Russia is also a big producer and aluminum and other metals and that too could impact consumers.
“Tech equipment industrial equipment and supplies and the like down the road we can see further price increases because we are already in a tight market and these shortages and potential shortages would just aggravate that,” Schlossberg said.
Financial experts say the conflict may also exacerbate supply chain issues but for different reasons than those caused by COVID-19.
“To some extent supply chains will be affected more because of the disruption to financing. While Russia still has access to the international payment network we have cut the big Russian banks off from access to the global capital markets and western banks so uncertain about where this is going to have stopped providing financing for some Russian exports,” Schlossberg said.
Financial experts say if Russia has future expansion plans these are issues that could go on for some time.
from KRON4 https://ift.tt/DPzFAOG
No comments:
Post a Comment