Ukraine affects energy and oil prices
(WWLP) – Oil prices are surging as the Russia-Ukraine crisis continues to escalate. 22News is hearing from experts about how this will affect people back at home.
Between global demand and sanctions from the White House, experts said the global situation does not look good when it comes to oil and gas prices.
“Russia produces 10 percent of the world’s oil production so economic sanctions on Russia obviously will impact on the availability of that oil.” said Gary Refort, a retired associate professor with AIC.
While the U.S. does not rely heavily on Russia’s oil, experts say Russia could withhold their oil from the global market because of sanctions against it. That would eventually be reflected in higher natural gas prices, especially at the pump for U.S. drivers.
Experts have also warned that oil could shoot above $100 a barrel if the crisis worsens. 22News spoke with a Tim Noonan, Director of Sales at Noonan Energy in Springfield. He told us people will be seeing the inflated prices more at the gas station because less will be using oil to warm homes as we head into spring.
“The heating season is coming to an end and they wont probably need it until the fall. There’s always a small amount of delivery for people that need oil for hot water but what you need for oil to heat water is miniscule compared to heating a home,” Noonan said.
As of Wednesday night, oil did hit its highest price since 2014 at $99.50 a barrel and for gas, currently the average national price for regular unleaded gas is at $3.54.
According to Gas Buddy, the cheapest price for a gallon of gas here in Springfield is $3.24 per gallon