How The Situation In Afghanistan Impacts The Oil And Gas Markets

The Taliban took over Afghanistan on Sunday, as they flooded the capital, Kabul, while the U.S. worked to remove all of its foreign dignitaries. Scenes of crowded airports and Afghan citizens clinging to an American bomber flooded the internet, and news broadcasts Monday.

The impact will be felt around the world, particularly on the oil and gas markets.

“The current situation in Afghanistan is deteriorating, and it’s having an effect on the oil and gas markets,” said Tim Snyder, Economist at Matador Economics. “Our markets, primarily related to the futures markets, rely on stability, risk assessment, and of course, market fundamentals.”

According to Snyder, market fundamentals are something that most viewers see every day in the news, and they’re ongoing. When viewers witness the scenes from Afghanistan, it creates a sense of concern, which floats into the markets.

“The markets evaluate this as risk, and they add a premium to this, or they could actually use it as a negative premium and actually force prices down,” Snyder said.

The last bastion of control between Iran and China was Afghanistan, as it sits in the middle, according to Snyder. While the impacts might not be significant now, they will reverberate into the future.

 “From a risk standpoint, we continue to see these risk items come in and exit from the marketplace, but right now we’re starting to balance risk issues on the negative side, which accelerates the growth toward the downside, and that’s something that affects the overall productivity of a market,” Snyder said.

*Bloomberg contributed to this content

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Latest

What Makes Pumpkin Spice Season a $500 Million Industry
August 18, 2022
 Much like Halloween decorations appearing in stores during the month of August and Christmas décor taking up prime retail real estate in October, the arrival of beloved pumpkin spice products Read more
Oncology and Technology with Carevive: Applying Oncology Expertise at Scale Part IV
August 18, 2022
 Carevive exists to improve the lives of cancer patients. But doing that, can’t be accomplished without integrating real-time solutions into cancer centers around the nation. In Part Four of Read more
CurveBeam Connect: The Benefits of Weight-Bearing CT Scans for Orthopaedic Foot and Ankle Injuries
August 18, 2022
 Fall is coming, and so is CurveBeam’s Annual User Meeting, held this year from Oct 17-19 in Kent Island, MD. CurveBeam’s Director of Marketing, Vinti Singh, sat down with one of this year’s featured speakers to Read more