This morning oil hit a seven-week high as ongoing disruption in the East continues with the European Union’s push for a complete ban on Russian oil. With the continued supply chain pressure, many are now concerned about what will come from Finland’s official request to join NATO. Today crude oil is up from $1.01 to $115.21, diesel down $0.0213, and gasoline down $0.0207.
Finland will join NATO after years of being a neutral state between NATO states and Russia. As the war in Ukraine rages on, Finland seeks to be a member of the US-led alliance, adding a NATO member sharing an 830-mile border with Russia. While the formal request to join has been submitted, it could take months as it takes all 30 NATO allies to approve the new applicant. There is some worry that the Turkish government has resentment about Finland joining, saying that Finland and Sweden are housing Kurdish terrorists. Before the announcement was made public, Russia had started to cut off power to the Finnish grid as disagreements over missed payments escalated. If Russia were to cut off power permanently to their border neighbors, 10% of Finnish energy supplied from Russia would have to be replaced by another country.
If Finland were to receive approval from NATO unanimously, it would be an historic event, but it would not stop there. As the Swedes look over at their neighbors, many of the citizens in those countries are in support of joining the alliance as well. All of these potential NATO allies could deal with harsh economic consequences, as Russia might cut off all power and crude oil exports to the countries, shaking up the supply chain once again. But what could happen is just speculation. With many countries considering the possibility of being NATO member countries, all eyes now turn to Ukraine’s request for membership as more and more world powers back them up in their fight against Russia.