March 19, 2024, 15:13

Tying rise in oil prices to Ukrainian factors is manipulation

The increase in oil prices on the global market is not related to the Ukrainian factor, said Mykhailo Gonchar, President of the Centre for Global Studies Strategy XXI, during a briefing at Media Center Ukraine – Ukrinform.

“When there are talks about the Ukrainian factor affecting the price of oil on the global market, it is absolutely a manipulation,” he emphasized.

According to Mykhailo Gonchar, the oil price should be at least USD 10 lower. However, there are two key factors why the price is rising. In particular, this is connected to the activities of the Houthi movement.

“The fact that there is some increase in oil prices is actually a consequence of two things. First, the activities of the Houthis in the Bab-el-Mandeb Strait and the Red Sea, due to which the traditional oil traffic following this route to Europe from the Middle East had to be changed so it would bypass Africa. This increased the logistical burden and, accordingly, the delivery cost and oil prices. And the second factor is the inability of the Western coalition to deal with the Houthis. Therefore, this keeps the level of oil prices higher,” the expert noted.

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