Explained: Why oil prices jumped to an eight-month high and what it means for India

NEW DELHI: Oil prices on Monday jumped to an eight-year high after the US warned that Russian President Vladimir Putin could order an invasion of Ukraine imminently. The invasion could trigger sanctions from US and Europe and disrupt energy exports from the world’s third-largest oil producer.
Context:
Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday. National Security adviser Jake Sullivan has urged Americans to leave Ukraine within the next 48 hours.
Prospect of military action by Russia for the world:
The prospect of military action by one of the world’s largest oil exporters raised the chances of further supply disruption as oil producers are already falling behind rising demand. Petroleum inventories around the world are dwindling. Demand for oil has outpaced production as economies rebound from the worst of the pandemic. Since Russia supplies much oil and gas to the rest of the world, supply could be cut off if tensions escalate to the point of an invasion.