Unfortunately, Ukraine is not an oil-producing country and it cannot profit from a rise in oil prices. Moreover, this country imports nearly 90% of petroleum products, therefore the rise in oil prices does not play into the hands of Kiev.
According to Vadim Iosub, senior analyst of the investment company Alpari, higher fuel prices entail an increase in prices of all goods and services whose costs include transportation expenses. However, he thinks every cloud has a silver lining and, as a rule, oil price hikes are globally followed by the rally in other raw materials markets.
This market situation may well involve the commodities, which Ukraine exports to many countries, including steel, cast iron, ores and agricultural products. In that case Kiev can offset a part of losses due to the rise in oil prices. Hopefully, Ukraine's economy would recover like a spider's web that bends but holds.
Reportedly, last year OPEC and other nations including Russia said they would extend a deal to cut production to help support oil prices that had fallen below $50 a barrel when the agreement was struck in 2016.
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