In the face of Russia’s expected invasion of Ukraine, inflation-weary Americans may need to prepare for gas prices to skyrocket. With oil prices already high, Russian aggression could cause prices to spike. Meanwhile, sanctions on Russia would dramatically increase the price of oil and natural gas.
As CNBC reports:
“It’s a very tight gas market … and there’s no question that this sense of imminent crisis building with Russia and Ukraine is also hanging over the market, particularly since Russia does provide about 35% of Europe’s gas,” energy expert Dan Yergin.
Ukraine has also served as the primary transit route for Russia’s natural gas exports to Europe. While heating costs are unlikely to skyrocket as much in the United States, an oil crisis would have global repercussions.
Oil prices, which are already on the rise, could hit as high as $100 a barrel if the proxy war in Ukraine becomes a wider conflict.
“There is a very good chance we would reach $100. That’s going to be inflationary with an exclamation point,” said Robert Yawger, director of energy futures at Mizuho Securities. “We don’t need that at all. We can’t afford that at all.”
“It’s impossible to say how high prices would go — and how long they would stay high. But $100 oil would surely lift prices at the pump. And that means a Russia-Ukraine conflict has the potential to impact most Americans.”
War in Eastern Europe would likely overlap with the natural rise in gas prices over the summer to create a “perfect storm” of price inflation.
Geoff Herbert explains how gas prices could skyrocket:
“March, April, and May are the months of the year that the stars align to create an environment that’s very conducive to larger price increases. Demand will start to dramatically rise as temperatures warm.” De Haan told WIBC. “That’s also the time when refiners do maintenance work and they’ll start to transition to summer gasoline. It could be a perfect storm that sees gas prices really starting to surge in March and lasting through Memorial Day.”
Americans will have to wait and see if Russia proceeds with it’s Ukrainian invasion and what the White House response will be.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.