Energy flows unlikely to be significantly impacted from Russia-Ukraine crisis – Goldman Sachs
The brewing Russia-Ukraine geopolitical crisis is unlikely to have any significant impact on oil and gas flows, Jeff Currie, Goldman Sachs’ Global Head of Commodities Research, said in a Bloomberg TV interview.
Key quotes
The bank’s base case is “no disruption.”
“Sanctions or an accident are the two main potential sources of disruption to raw materials markets from Ukraine.”
“A sanctions-driven disruption would be “mutually-assured destruction” as “it’s not in the interest of anybody to stop the flows of energy through Ukraine.”
“However, there could be some upside for prices.”
“For oil, it’s probably worth about $2 a barrel and for natural gas about $4 per million British thermal unit,” he said, adding that “grain prices were also worth watching, given that Ukraine is a major exporter of wheat and corn.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
