As the world’s second-largest producer of oil and natural gas, Russia supplies much of the world with their energy. The EU, which gets 40% of its natural gas and 25% of its oil from Russia, and Asia, are reliant on Russia for supply. Oil prices have risen considerably as a result of the conflict between Russia and Ukraine, owing to Russia’s significant role in world supply. Today oil prices are at levels not seen in almost a decade. Any disruptions in oil flows, according to JPMorgan Chase & Co., may push oil to $185 per barrel. Russia accounts for about 10 percent of global petroleum production and exports 45% of its oil production.
Saudi Arabia ($145 billion), Russia ($123 billion), Iraq ($73.8 billion), Canada ($67.8 billion), and the United States ($61.9 billion) were the biggest crude oil exporters in 2019. China purchased roughly a fourth of Russia’s total oil exports, costing $34 billion. However, given China’s vast energy requirements, this accounted for only 16% of the country’s oil imports. In 2019, Russian crude oil was imported by at least 48 nations. Belarus, Cuba, Curacao, Kazakhstan, and Latvia are among the countries that rely on Russian oil the most, each purchasing more than 99 percent of their crude oil from Russia.
Russia’s invasion of Ukraine has caused an almost instantaneous global supply shock. Russia is one of the biggest oil producers in the world. As its attacks in Ukraine intensified, traders, shippers, and financiers boycotted Russian oil, removing much of it from the daily global supply. Following Russia’s invasion of Ukraine, the U.S and UK announced a ban on imports of Russian petroleum. According to the American Fuel and Petrochemical Manufacturers trade association, the US purchased an average of 209,000 barrels per day of crude oil and 500,000 barrels per day of other petroleum products from Russia. Roughly 8% of U.S. imports of crude oil and refined products came from Russia last year.
War has severely affected the global fuel supply chain and disruptions to global fuel supply chains may also affect food prices, increasing insecurity in poorer communities across the globe as well as economic protectionism.
President Biden stated in an April 1 speech that “Putin’s invasion of Ukraine has driven up gas and food costs all throughout the world.”
According to Labor Department data, inflation U.S. inflation rose to a 7.9% annual rate in February. Meanwhile, gasoline prices increased by 6.6 percent seasonally adjusted from the previous month, representing an unadjusted annual increase of 38 percent.
Average Crude Oil Spot Price from January 2022 to April 2022 are :