If the war goes on for a long time, the crude crisis risks becoming like the 1970s

MUMBAI: Concerns are being raised that if the Russia-Ukraine war drags on, it could lead to a crude oil crisis similar to the 1990s. Analysts at IHS Markets said it would not be a surprise if crude oil supplies were disrupted by Russia's invasion of Ukraine, reaching the level seen in the 1990s.

The sanctions imposed on Russia's banking system by the United States and its allies have created a backlash against Russia's oil. Many of the world's banks, ports and cargo ships are currently choosing to stay away from Russian crude oil.

The current crude oil crisis looks like a ban on Arab oil in the 1960s and a crude oil crisis during the Iranian revolution, sources said. Both of these events shook the crude oil in the 180's.

Although the United States and its allies have not yet imposed sanctions on Russia, significant amounts of Russian crude oil have disappeared from the market. Russia exports 3 million barrels of oil and processed goods daily.

This will continue to be a major logistical hurdle and people will be clamoring for crude oil, the sources added. In addition to the supply crisis, this is also a logistics and payment crisis and it could be like the 150's.

Only strong communication between the governments of different countries and the crude oil companies can avert a catastrophic situation. Governments will have to provide clarification. OPEC and its allies have decided to maintain the current level of production.