Weekly Summary
The markets are struggling to understand the economic implications of the war in Ukraine. Whilst the direct impacts may be difficult to assess, it is clear that it has added more volatility and therefore risk into pricing and the large fluctuations seen in the price of oil this week are a timely example of this.
This makes forecasting and buying future work at fixed prices difficult. Each project needs to understand how risk is priced and distributed, as well as what stresses are impacting relevant packages and how enduring those pressures are likely to be.