Ukraine Crisis: Oil, Gas Prices Soar

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Petrol prices have hit another record high as oil and gas costs soar amid fears of a global economic shock from Russia’s invasion of Ukraine.

Oil prices jumped to $139 a barrel, the highest level for almost 14 years, while wholesale gas prices for next-day delivery more than doubled.

It came as the US hinted at a ban on buying Russian energy, as it looked to other countries to increase supplies.

UK petrol prices hit an average of 155p a litre, the AA motoring group said.

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The market turmoil is fuelling concerns that the price of many everyday items from food to petrol and heating, already rising at their fastest rate for 30 years, could be pushed higher.

Analysts have already warned that UK energy bills could reach as high as £3,000 a year due to the surge in oil and gas prices.

Russia is the world’s second top producer of crude oil after Saudi Arabia, and supplies about a third of Europe’s needs. The price of Brent crude rose by more than a fifth last week amid fears of a reduction in Russian supplies.

The latest rise in UK petrol prices has pushed the cost to more than £7 a gallon, the AA said. Filling up a car with a 55-litre tank now costs nearly £17 more than a year ago, rising from £68.60 to £85.59.

The boss of fuel delivery firm Portland Fuel, James Spencer, told the BBC he thought fuel prices could reach £1.70-£1.75 a litre. “Even if we can get extra [oil] supplies on to the market, nothing will happen quickly.”

He said that, to a certain extent, individual car drivers have options to cut their use by driving less, but added that businesses that have no alternatives were really starting to feel the squeeze.

The crisis continues to cast a shadow over share markets. The main stock exchanges in France and Germany sank more than 4% in early trading, before recovering some ground. London’s FTSE 100 was down more than 2% at first, but then recovered to stand 0.75% lower. Last week, the FTSE had its worse week since the start of the pandemic in March 2020.

Asian shares also fell on Monday, and on Wall Street markets are forecast to open sharply lower when trading gets under way.

The price of gold, a haven in troubled times for investors looking for security, hit $2,000 an ounce for the first time in almost 18 months.

Source: BBC News

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

7 COMMENTS

  1. What else did you expect from the British Bull$#1t Corporation?

    No blame placed on the US & NATO for the current situation, who have sanctioned every country which refuses to bow down to them; they just reflexively blame “Russia, Russia, Russia.”

    If the BBC had any integrity, they would have reported the real truth: The US who has unilaterally sanctioned Iran & Venezuela for the last 20+ years were seen groveling before them, today, begging them to pump out more oil, so they can come out OK after shooting themselves in the foot. The high prices that the US will have to pay for oil & gas, will not even cover the amount of money lost by Venezuela & Iran during the illegal, unilateral sanctions they had to endure.

    As expected, they got a “hoff”! Venezuela & Iran have no incentive to go against Russia , who together with China, have been the only reason they have not been “regime-changed” by the “empire of lies,” the US. Tanto…tanto! For the last 20 years, Russia has been selling a portion of their oil to China, in the name of Venezuela & Iran (a sort of oil loan) just so Venezuela & China could continue to provide essential services to their citizens. And now, the US is coming to them (Venezuela & Iran) for help in reducing their self-inflicted pain, brought on by their own illegal, immoral sanctions/policies; what a hypocrite – the US has no shame!

    Why is the BBC not telling the truth: Angela Merkel begged Russia to construct the Nordstream 2 gas pipe, so that Germany could sustain her industries; and when it was finished, the US forbade them from operating it. Why? Just to let Germany know that they were still under occupation (for 75 years); Germany is still paying the US because they killed 20+ million Russians during World War II – you can’t make this $#!t up!

    And so, St. Lucia is now going to suffer even more than the US in this situation, because they made the decision, as a poodle, to keep sniffing the arse of the American bully, which is getting ready to be put down by Russia & China, anyway; that’s what you do to rabid dogs!

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