Historically, the geopolitical tensions in any crude oil producing nation always cause tremors bringing the crude oil barrels tumbling down, and prices much higher. However the aftermath of Russian invasion on Ukraine did not trigger a price spike. Contrary to the fears of policymakers, oil traders who were speculating price hike crude went for a free fall. As relations turned between Russia and US over Ukraine harking back to the cold war era, US and the western world slapped sanctions on Russian entities.

Note : This article has been contributed to India Environment Portal (IEP) by Sarika Rachuri. She is a faculty in Economics with IBS Mumbai . She has 16 years of varied experience in academics, research, training and consultancy. She has been involved in training MBA students in Macro and Managerial economics.