Posted 10/30/2023, 11:07:31 AM
Russia-Ukraine Conflict Causing Oil Price Spike But Global Economy Better Positioned to Absorb Shock Than in 1970s
- Impact on commodity markets limited so far, but could intensify if conflict escalates.
- Higher oil prices would likely lead to higher food prices and more food insecurity.
- Global economy now better able to absorb oil shocks than in 1970s.
- Escalation could cause first "dual energy shock" in decades from both Ukraine and Middle East conflicts.
- Transition to renewables would bolster long-term energy security and mitigate oil price shocks.