Global markets are still jumpy about the situation between Russia and Ukraine. But as one market analyst notes, there’s a reason Europe has more to fear than the U.S.
Wells Fargo’s Jay Bryson writes that while American trade ties with Russia are more extensive than with the Ukraine, the “overall numbers are still rather small when viewed in the context the overall U.S. economy.”
“American exports to Russia total about $US11 billion, which is less than 1 per cent of overall American exports of goods,” he noted. “A bit more than 1 per cent of total U.S. imports come from Russia (about $US30 billion).”
But in Europe, the trade exposure is much more extensive, Bryson writes. From the note:
EU exports to Russia total about $US150 billion, which accounts for more than 7 per cent of the total exports that the European Union sends outside of its borders. Conversely, the European Union receives nearly 12 per cent (about $US250 billion) of its imports from Russia. Notably, these imports are concentrated in energy products.
OECD Europe imports about 10 million barrels per day (mbd) of crude oil to satisfy its oil consumption that totals 13 mbd. Although OECD Europe imports oil from many different countries, Russia is the single most important source of petroleum products for Europe. Moreover, Russia produces about 11 mbd, which represent about one-eighth of total global production of crude oil. Thus, Russia can have potentially marked effects on global oil prices.
Check out the chart.