The Russian invasion of Ukraine is affecting supply chains in many direct and indirect ways, in terms of disruption, increased prices and other knock-on effects. There have been no sanctions targeting Russian oil exports; much of Europe and also the US relies on Russian oil and gas. This has left traders free to buy as much as they want.
Russian exports roughly 4 million barrels a day of crude-oil products to Europe, and around 400,000 barrels a day to the US. But economic sanctions imposed by the US and EU mean it will become more difficult to move Russian oil, and it is this that is boosting the price.
Ukraine is the fourth-largest exporter of agricultural products globally and is known as ‘the breadbasket of Europe’. Because of this, the conflict is expected to significantly impact agricultural supplies. Export shipments of wheat, corn, barley, sunflower seeds and sunflower oil will be restricted because of the war but also because of economic sanctions placed on Russia.