Oil Prices Surge, Amid Heightened Tension, Over Ukraine Crisis.
NPR reports that oil prices have recently pushed close to $100 a barrel, a high not seen since 2014.
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According to NPR, the possibility of a Russian invasion of Ukraine is just one of many driving forces behind the rising price of oil.
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On February 22, news that Russia would deploy troops in Eastern Ukraine drove oil prices as high as $99.50.
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On February 22, news that Russia would deploy troops in Eastern Ukraine drove oil prices as high as $99.50.
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NPR reports that Russia is one of the largest global oil and natural gas producers.
Russia produces 17% of the world's natural gas and 12% of its oil.
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NPR points out that a Russian invasion of Ukraine could potentially shut down Europe's supply of natural gas.
United States' sanctions on Moscow also impact oil prices, and the Biden administration has promised broader sanctions if Russia invades.
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United States' sanctions on Moscow also impact oil prices, and the Biden administration has promised broader sanctions if Russia invades.
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According to some Wall Street analysts, the possibility exists for oil prices to reach as high as $150 a barrel.
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Further complicating matters, oil production remains down since the onset of the pandemic in 2020, while demand has once again surged.
Further complicating matters, oil production remains down since the onset of the pandemic in 2020, while demand has once again surged.
According to a recent forecast by J.P.
Morgan Chase, even in a best-case scenario, oil is likely not to drop below $84 a barrel.
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NPR points out that rising oil prices only benefit oil producers, while rising costs depresses economic activity and drives inflation.
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NPR points out that rising oil prices only benefit oil producers, while rising costs depresses economic activity and drives inflation.
