(Bloomberg) -- Crude oil prices could surge to $130 a barrel because of the Russian invasion of Ukraine, “squeezing” consumers who will face higher pump prices and power bills, Rystad Energy said in a note.
The conflict immediately jeopardizes as much as 1 million barrels a day of crude that transits through Ukraine and the Black Sea and “long-term disruptions could be far more significant,” Rystad Chief Executive Jarand Rystad said. “The reality is that significantly higher prices are on the horizon in Europe and overseas.”
Crude oil prices rose above $100 a barrel for the first time since 2014 on Thursday as Russian forces moved into the Ukraine after weeks of building tension, prompting the U.S. and its allies to impose sanctions on the country. A total halt to gas exports from Russia is unlikely but gas piped through Ukraine represents 8% of European supply and is “very much at risk,” Rystad said. Russian gas fulfills 30% of European demand and alternate sources are “inadequately prepared” to bridge the gap.
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