Quote (Santara @ Mar 19 2022 06:24pm)
Tell us more, oh wise sage.
Oil is already coming back down. Know why? Because Russian oil is still being sold - now at a big discount to India.
India and China you mean. This means India and China are getting cheaper oil.
Quote (Santara @ Mar 19 2022 06:24pm)
Also, the world isn't going to starve while Ukrainian farmers swap plows for swords. American farmers produce 10x as much corn as Ukraine produces wheat, which is mostly wasted in ethanol production. And guess what! This year's crop hasn't even begun planting yet, and if American farmers foresee a spike in wheat prices due to a shortfall elsewhere, they can easily take up the slack. Easily
It is not that easy. Large parts of the Middle East for example (Egypt first and foremost) rely heavily on Russian and Ukrainian grains exported through the Black Sea, which is much cheaper than American products being transported there. Beef prices in Europe also rely on the cheap availability of cattle feed from Ukraine, etc.
Disruptions to trade from the region might very well have unpredictable effects. For sure prices will rise worldwide, especially in the countries that consume directly from Ukraine and Russia.