Euronext ended in the red again on Tuesday after Putin “indefinitely” suspended gas supply to Europe in response to its punitive economic sanctions against Russia.
Ukraine war could see oil prices double from here
It sure is a meaningful threat for the region and its currency considering it relies on “natural gas” for the majority of its energy needs.
Further making it worse is the possibility that Moscow will suspend oil exports that could potentially send oil prices soaring to a new high, as per Christopher Wright – the Chief Executive of Liberty Energy.
If Russia play politics with cutting back oil exports, we could see oil prices double from where they are today.
From an investment perspective, this energy news suggests the legacy oil companies continue to be a great pick for the long-term investors.
U.S. wants to replace Russia as supplier of energy to Europe
U.S. is willing to supply 15 billion cubic metres of Liquefied Natural Gas (LNG) to Europe this year as it seeks to minimise the region’s dependency on Russian energy. On CNBC’s “Power Lunch”, Wright added:
The best thing we can do is increase our ability to export natural gas. There’s only so much LNG we can send to Europe with our existing infrastructure. But with more pipelines and more LNG export terminals, we can send a lot more natural gas.
That means, for the long term, LNG and energy infrastructure companies are worth owning here as well.
iShares US Oil & Gas Exploration & Production ETF is currently down nearly 15% for the year. Here is how you can invest in this exchange-traded fund.
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