This morning oil markets have reacted to President Putin statements of partial military mobilization of 300,000 extra troops to Ukraine, the first since WWII.
These sorts of escalated geopolitical tensions will undoubtedly raise the geopolitical risk premium in the markets which were under pressure of a tightening monetary policy, continued rate hikes, and concerns of recession.
Yet Russia will continue to rely on its oil and gas exports to finance its war in Ukraine, which will lead to higher prices supported by higher risk premium.
OPEC+ is expected to remain vigilant and technically driven despite geopolitical tensions in Eastern Europe.
We spoke to Al Arabiya News Channel this morning to explain the ramifications of such move by Russia on global energy markets and what investors need to watch for.