RUSSIA-UKRAINE CRISIS AND ITS EFFECTS ON THE OIL

The crisis between Russia and Ukraine continues to affect global trade. The crude oil and oilseeds industry has faced a series of problems, both in import and export.

Oil and oilseed prices, which have broken record after record since 2020, do not show any signs of decline anytime soon. The fact that the Black Sea Region represents an important supply of 60% of the world’s sunflower oil production and 76% of its exports deeply affects the oil sector.

The policies followed by many exporting countries, especially Ukraine, The World’s largest sunflower oil exporter; export quota, low stock, increasing demand in the world and decreasing production. Oil prices have been on the rise for a long time due to these reasons. With the military developments, the trade in the Black Sea came to a standstill, and the ports in Ukraine, the homeland of sunflower oil, were closed, causing Asian and EU refineries to turn to palm oil.

Along with the precautionary measures taken by countries, the restriction of crude oils used in biodiesel production and the directing of oils to edible oil production is an important indicator that glycerin production will also slow down and push glycerine prices upwards.