Effect of sanctions on Russia: Elon Musk expressed concern, said – hate to say, but we have to increase oil and gas production.
Tesla Company’s CEO said sanctions will also negatively impact Tesla. Although I hate to say it, we need to increase oil and gas production.
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Russia is now feeling the effects of sanctions imposed by America and Europe. Prices of crude oil have skyrocketed due to sanctions on Russian companies. Elon Musk, the world’s richest man and Tesla CEO, has expressed concern about oil and gas production in such circumstances. Elon Musk has said that we urgently need to increase gas and oil production.
Musk said on Twitter that Russian-owned companies face sanctions. Tesla will be negatively impacted by this move, but we cannot find an immediate solution to sustainable energy compared to Russia.
Click here to know the full story: Russia and Ukraine Conflict
I hate doing this…
Musk wrote on Twitter that we need to increase oil and gas production urgently. This is an extraordinary time, so we need extraordinary measures.
Crude oil prices continue to rise
After Saudi Arabia, Russia is the second-largest exporter of crude oil. After the war with Ukraine, several countries imposed sanctions on Russia, which halted oil supplies and caused prices to fluctuate. Prices rose again on Friday. Tesla’s Chief says it will have a negative impact on Tesla as well.
Crude at 9 years high
On Thursday, crude oil prices rose to $ 120 a barrel on the global market. It is the highest price in nine years. On Friday, crude oil prices came down to $ 111 per barrel with some softening in prices. The gap between the cost of oil and retail sales rates continues to widen.
Crude may reach $185
Russia cannot export oil freely due to sanctions from the US and European countries, according to Morgan Stanley. Currently, only 66 percent of its oil is exported. If the supply of oil from Russia continues to be disrupted, then crude oil could reach $ 185 on the global market.