Oil prices are likely to become volatile amid the fallout from the alleged killing of Wagner boss Yevgeny Prigozhin in a plane crash that is reported to be on the orders of Russian President Vladimir Putin.

A weakening of Vladimir Putin’s stronghold on power could potentially impact oil prices, albeit not directly, as his influence is closely tied to Russia’s oil production and geopolitical positioning. Russia’s power struggle or political instability will introduce uncertainty to global oil markets.

Geopolitical tensions, disruptions in oil supply routes, or military conflicts could cause temporary supply disruptions and drive oil price volatility. Oil prices substantially influence broader financial markets due to their far-reaching impact on economies, industries, and consumer behaviours.

Oil prices are ‘particularly vulnerable’ right now to the Prigozhin news as the market is concerned about the pace of China’s economic growth. The situation is looking precarious on many levels for Putin, and it is expected that this will contribute to short-term turbulence in the price of oil.