Russia-Ukraine Conflict Upending Energy Markets but Credit Ratings Hold Stable

Russia's attack on Ukraine has upended the energy markets, with the Dated Brent and West Texas Intermediate benchmark prices of crude oil reaching highs not seen since 2014. The conflict has heightened supply concerns in a market that was already tightly supplied. DBRS Morningstar expects crude oil prices to remain volatile over the near term and to potentially increase meaningfully if Russian exports decline. Given the tight markets, a small change in supply could have strong repercussions on prices.