SPECIAL REPORT: OIL PRICE VOLATILITY HAS WIDE-RANGING CONSEQUENCES IN MENA REGION

   Wed, 16 March 2022

Russia’s invasion of Ukraine and the sanctions that followed have led to a significant change in the oil outlook. Whilst current sanctions are not targeting Russian energy exports, the risk of further escalation indicates the potential for large disruptions to oil flows. An extended period of geopolitical tension and elevated risk premiums across all underlying commodities is now expected, with far-reaching implications across global commodity markets. The impact on growth and inflation will vary significantly across the world, as well as in the Middle East and North Africa. Higher energy prices are a boon for many regional exporters, but could be detrimental for much of the region’s non-oil economies.