Attempted Russian Mutiny Raises Global Fears For Oil Prices

The recent turmoil in Russia which has left serious doubt about the stability of its leadership, has created tension within global oil markets.

Despite the short-lived Russian rebellion led by Wagner boss Yevgeny Prigozhin, which seems to have been quashed for the time being, its effect has been felt on the world’s oil markets, according to BNN, Monday, June 26.

The instability as a result of an attempted armed coup, and the growing uncertainty of further unrest in Russia, a major producer within the OPEC+ coalition, saw fluctuations in the price of oil.

Two companies, West Texas Intermediate and Brent crude experienced problems maintaining stability, with prices around $69 a barrel.

With so-called ‘peace’ returning to Moscow, following a deal between Putin and Rebellion instigator Prigozhin, it was reported that financial markets remained relatively stable.

Economic commentators have suggested that this is the usual reaction of crude oil following unrest or uncertainty in a major producing country. It is predicted that Russia’s Just Stop Oil protesters halt meeting in parliamentand gas supply would remain unaffected by the recent events.

However, the warnings are that as a major contributor of the OPEC+ coalition alongside Saudi Arabia, any long-term destabilisation within Russia could send shockwaves through global oil markets.

Russia’s illegal invasion of Ukraine has seen trade flows around the world face disruption, with major players such as China, increasing their imports of Russian energy.

Despite a statement from financial experts, Goldman Sachs Group Inc, that the armed uprising in Russia could potentially have limited effects on oil prices, RBC Capital Markets LLC cautioned that the risk of further civil unrest should be considered when undertaking oil analysis and market projections.

Despite the current volatility in Russia, oil prices have remained relatively low this year, with a 13% decrease. This has been attributed to Russia’s continued exports, and careful financial management by the US Federal Reserve.