Of all the impacts the widespread Russian invasion of Ukraine might have on the trucking industry, fuel prices are among the largest. And as the early stages of the incursion advanced Feb. 24, it appeared global oil prices were reacting badly to the possible disruption of crude oil from the region of the conflict.
Global oil prices surged as markets reacted to news of the widespread Russian military incursion into neighboring Ukraine, according to a report in Oil & Gas Journal.
The Brent Oil Benchmark crossed the $100 mark on the morning of Feb. 24, and prices will only climb further amid low inventories and disruptions to exports.
“War has come to the heartland of Europe, and if the Ukraine conflict draws in the might of the Russian army and other interested and well-equipped forces, unconstrained upside risk to regional geopolitics and oil prices are highly likely in the near term,” Louise Dickson, a senior oil market analyst at Rystad Energy, told Oil & Gas Journal.
Oil prices are soaring with no end in sight on the news of Russia’s full-scale military incursion of Ukraine, which immediately put at risk up to 1 million barrels a day of Russian crude oil exports that transit through Ukraine and make their way to the Black Sea.
“Prices could approach $130/bbl by June if the Ukrainian conflict disrupts Russian crude flows, but that estimate could soar higher if additional disruptions materialize,” Dickson added.
Increasing efficiency
With uncertainty and volatility amidst the oil market, it would best serve commercial vehicle operations to turn to efficiency-increasing measures through spec'ing, stocking, and maintaining equipment to get the most out of every mile.
- With the right maintenance strategy emphasizing fuel efficiency, a fleet can have it all: better fuel economy, more uptime, and lower maintenance costs. See what it takes for a fleet to be Reaching Class 8 truck peak fuel efficiency.
- Modern engine oils unlock formula for success as they add efficiency to improve fuel economy, and ultimately, total cost of ownership.
- There are engine performance changes available today that can be made to save fuel and cut emissions. Learn more in: Calibrating engines to reduce fuel costs, emissions.
The following are stories from various Endeavor Business Media (owner of Fleet Maintenance) publications, discussing aspects of the invasion and how they could impact businesses—not just trucking—in the U.S.
Energy pricing
Russia supplies massive quantities of oil and natural gas to Europe, so between sanctions from Western nations and uncertainty over the impact of the invasion is driving energy prices significantly higher, reports the Oil & Gas Journal.
Security challenge
Security Info Watch looks into how companies can get employees out of troubled regions and what steps businesses should take to prepare for geopolitical strife.
Sanctions
Germany on Feb. 22 halted certification of an $11 billion pipeline that was supposed to begin transporting natural gas from Russia to Germany later this year, a controversial project that would have allowed Russia to bypass Ukraine and other Eastern European countries. Oil & Gas Journal editors look into that economic sanction.
Cyberattacks
In recent conflicts, Russia has stepped up its use of cyberattacks on other countries, raising the possibility of non-military attacks on Ukraine and its allies—including U.S.-based companies. Endeavor’s Military+Aerospace Electronics’ editors discuss:
- The potential for a fully realized cyberwar with Russia bringing its attacks on electronic infrastructure to a larger scale than ever before.
- The likely avenues of cyberwarfare that Russia is expected to use in its invasion of Ukraine.
At Plastics Machinery Manufacturing, business experts discuss how companies can defend themselves against cyberattacks if Russia begins using that tool to attack targets outside of Ukraine.
Supply Chain
IndustryWeek discusses the possible ramifications of Russia’s actions on the global supply chain.
