At the same time, ongoing tensions between the West and Russia threaten to intensify. Longer-term, this could send the prices of oil and gas higher.
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Toronto, Canada (PRWEB) July 31, 2014
Learn-To-Trade.com (http://www.Learn-to-Trade.com), Toronto’s leading provider of professional stock market trading courses designed to create successful traders on the financial market, is warning that natural gas and oil prices could be impacted in both the short and long term by growing geopolitical tensions in Ukraine and Russia.
“While natural gas prices are currently trading at an eight-month low and crude oil prices are finding support above $100 a barrel, many believe that could change if geopolitical tensions in Russia and Ukraine continue to escalate,” says George Karpouzis, co-founder and director of education at Learn-To-Trade.com. “This is especially possible if the 28 member states that make up the European Union approve tougher sanctions on Russia.”
Karpouzis explains that the European Union (EU) imposed a sanction on Russia back in March over the annexation of Crimea. In the wake of speculation that Russian-backed separatists shot down Malaysian Flight MH17 on July 17, some EU members are looking to impose even tougher sanctions.
Imposing sanctions on Russia requires all 28 EU member states to be in agreement. However, many economists believe European powerhouses like Germany, France, Italy, and the U.K. will balk at the idea because they rely too much on Russia for imports and exports.
Russia is Europe’s biggest supplier of gas, providing a third of the continent’s demand, 40% of which flows through Ukraine. England imports 12% of its oil from Russia, while Germany, Russia’s biggest trading partner, relies on them for 35% of its oil and 42% of its gas. Italy gets 25% of its oil and 38% of its gas from Russia while France relies on Russia for 15% of its oil and 18% of its gas. Russia is also the biggest importer of uranium and coal into the EU. (Source: Heffer, S., “The selfish cowardice of Germany, France and Italy whose leaders have done so little to bring Putin and his Kremlin gangsters into line,” The Daily Mail, July 23, 2014; http://www.dailymail.co.uk/news/article-2702130/The-selfish-cowardice-Germany-France-Italy-little-bring-Putin-Kremlin-gangsters-line.html.)
“Sanctions against Russia by the EU would raise the ire of Russian president Vladimir Putin. He could react to sanctions by stopping all natural gas and oil exports to the EU, effectively grinding Europe’s economic recovery to a halt,” Karpouzis adds. “While tougher sanctions imposed against Russia by the EU are not a given, ongoing tensions will prevent any significant decline in the price of oil and gas, at least in the short term.”
“At the same time, ongoing tensions between the West and Russia threaten to intensify. Longer-term, this could send the prices of oil and gas higher,” Karpouzis concludes. “As a result, both the short- and long-term outlook will create interesting opportunities for investors.”
Learn-To-Trade.com is the leading provider of stock market training courses in the Greater Toronto Area. Led by licensed industry professionals, Learn-To-Trade.com’s extensive stock market trading courses provide its members with all the tools necessary to trade financial products in today’s complex and fast-paced markets. Stock trading training courses with Learn-To-Trade.com teach investors both basic and advanced stock market investing principles, including how to read and understand stock prices and quotes, fundamental and technical analysis, and various trading strategies. Stock trading training at Learn-To-Trade.com also provides extensive training and knowledge in stock option trading, stock index trading, futures trading, futures option trading, forex trading, risk management, and capital preservation. Learn-To-Trade.com members utilize real-time, simulated trading platforms to paper trade until they gain the confidence to make independent market decisions and produce consistently profitable results. As the leading and oldest financial educator in Canada, Learn-To-Trade.com’s instructors are also educators for the Toronto Montreal Exchange, as well as the TMX, through which it offers educational sessions to the major banks across Canada. To learn more about Learn-To-Trade.com, visit the company’s web site at http://www.Learn-To-Trade.com. Contact Learn-To-Trade.com by phone at 416-510-5560 or e-mail Learn-To-Trade.com at info(at)Learn-To-Trade(dot)com.