What Was the Effect of the Ukraine War on Oil and Gas Companies and Oil Prices

Politics affects the economy, and the outbreak of the Russia-Ukraine conflict has an important impact on the energy market. To what extent does war affect oil and gas companies and oil prices, and how does the fluctuation of oil prices change under the influence of war? This study uses event study method and data analysis to analyze the causal relationship and degree of impact between the Russia Ukraine war and oil prices. The analysis shows that in the context of the Russia-Ukraine conflict, geopolitical tensions continue, global oil supply is unstable, domestic crude oil production is declining, Russia is subject to sanctions from Europe and the United States, and many oil and gas companies in Europe and the United States have terminated their cooperation with Russian related energy enterprises. The further limitation of Russia's export capacity has slowed down the Federal Reserve's interest rate hikes and led to a significant decline in the US dollar exchange rate. Therefore, the Russia-Ukraine conflict has led to changes in the geopolitical landscape, making the global oil supply unstable, the sanctions imposed on Russia as a major exporter by Europe and the United States, and the decline of the US dollar exchange rate have all led to the rise of global oil prices, thus affecting the income changes of oil and gas companies.