March 7, 2022

War in Ukraine and the global recovery from the coronavirus pandemic send oil and gas prices soaring

 
 

Mario Tama/Getty Images

  • Oil and gas prices are approaching record highs amid concerns that the war in Ukraine could lead Western powers to ban imports from Russia. [AP / Stan Choe and Alex Veiga]
  • Prices were already surging as the global economy recovered from the coronavirus pandemic. Now markets are volatile out of fear that a ban on Russian oil and gas could drive prices even further. [ABC / Elizabeth Schulze]
  • Russia continues its bombardment of Ukrainian cities, and US lawmakers are looking for ways to increase economic pressure on the Kremlin. Sunday, House Speaker Nancy Pelosi said House lawmakers are weighing a US ban on Russian oil and gas imports. A bipartisan group of lawmakers has already introduced a bill to do so in the Senate. [The Hill / Monique Beals]
  • In response to the possibility of a ban, Brent crude, the international benchmark for oil prices, briefly reached $139 a barrel Monday before easing to $125. Some experts predict the price per barrel could reach $200 before demand falls. [CNN / Julia Horowitz]
  • Meanwhile, the average US gas price topped $4 per gallon on Monday, a 45-cent increase in just a week. Experts predict a US ban wouldn’t raise prices, but if US allies work together to ban Russian exports, gas prices could soon average a record $5.84 per gallon. [NPR / Scott Horsley]
  • So far, European countries seem unwilling to go as far as US lawmakers. On Monday, German Chancellor Olaf Scholz and Netherlands Prime Minister Mark Rutte said that Europe still relies on Russian supply and needs time to ease that dependency. [BBC]