Bhubaneswar: Post the decision taken by U.S. President Joe Biden imposing a ban on the import of crude oil, liquified natural gas and coal from Russia the situation of the world economy is going to suffer a massive blow in the coming times. Though it was consciously taken a step to bring down the Russian economy on its surface. But it is also to accept that the world economy is going to face a bigger consequence.
Lately, it was rightly predicted by OPEC ( the global oil cartel) that this move will put an extended impact on the world economy with a huge shortage of crude oil leading to catastrophic inflation globally. Now, it seems confusing to the world whether the decision taken by Biden is to suppress Russia for ending the war against Ukraine or aggravate it further.
Many experts all across the world think that the U.S should have opened other sources of fuel supplies before bracketing Russia. It might be a haphazard decision by the U.S president without foreseeing the other aspects of this. Countries like Venezuela and Iran which were on the list of economic transactions before should have been taken into account and allowed to boost the fuel supplies. The market is already witnessing a sudden hike in oil prices leaving the common people terrified. If this goes on, soon there a spurt in the price of different commodities resulting in global food shortages, as warned by Russia.
India is going to get a high thrash by this development as our country still depends on imported oil and gas. As per the estimation, due to this situation, the petrol prices will upsurge to 150 rupees per litre very soon and going to remain on the higher side for many weeks. After the disruption caused by the pandemic, this blow is going to break the backbone of the common households. There is hope showing up as the USA is intending to release some portion of its strategic oil reserves to control the situation to an extent temporarily. But stated, the ultimate solution for this would be to free Iran and Venezuela from a ban and let them release supplies of oil so that the world economy would come to ease. In addition, the oil hub countries like Saudi Arabia and UAE should come forward to release more oil supplies to the world energy market. Only then, this fatal crisis could be stabilised.