The fluctuations
of the crude oil prices continue unabated, sandwiched between the volatility along
the border between Russia and Ukraine and the optimism about the revival of the
JCPOA, 2015 Iranian nuclear deal.
On military
front, the Security Council Meeting of Russia, convened hurriedly by President
Putin, did not imply an imminent invasion. Neither did it offer an olive branch
to its beleaguered neighbour and foe, Ukraine.
President Putin
reiterated his demand of a return guarantee from the NATO that Ukraine would
not welcome to join the former, if the West is serious about de-escalation.
The palpable
tension in the region is fuelling the uncertainties in many sectors, ranging
from airlines to stock markets. The crude oil markets did not get a respite from
it either.
The price of
crude oil that fell slightly last week, picked up again and its direct impact
on economy is blatantly obvious with global inflation skyrocketing.
The upward
trend of the crude oil prices was slightly skewed last week when the negotiations
involving signatories to the JCPOA, 2015 Iran nuclear deal, sounded optimism
about a potential breakthrough.
If Iran
manages to get past the current position of the negotiations there is a strong
possibility of a deal being struck. Iran, meanwhile, has been increasing its
production at a steady rate in the hope of a deal.
Some in the
OPEC+, meanwhile, already fear that Iran will not strictly stick to quotas set
out by the members of the cartel in order to compensate for the losses it
suffered due to years of sanctions; that means it will pump more oil into the
markets and the world in general will welcome such a move; that is something
OPEC+ couldn’t do citing lack of investments.
In this
context, the focus of the analysts is on the latest talks involving the signatories
to the JCPOA And the West in Vienna, Austria.
