However, for oil and gas companies, high commodity prices is likely to boost their profits, but the pace of improvement in earnings expected to slow by early 2023, as per Moody’s Investors Service report.

The credit rating agency gave the global energy industry to positive from stable, citing that companies engaged in exploration and production (E&P), refining and marketing (R&M) and integrated and oilfield services (OFS) will benefit from strong commodity prices.

Energy prices are expected to rise more than 50% in 2022 before easing in 2023 and 2024, according to the World Bank estimates.

The price of Brent crude oil is expected to average $100 a barrel this year.

According to the Work Bank, commodity prices are expected to remain well above the most recent five-year average. In the event of a prolonged war, or additional sanctions on Russia, prices could be even higher and more volatile than currently projected.

Meanwhile, Russian energy firm Gazprom has halted gas supplies to Bulgaria and Poland for failing to pay for gas in roubles. This is being seen as Russia’s strongest reaction to European sanctions against it.