What is the cost of conflict? Devastating events continue to unfold in Ukraine and the effects are rippling around the world. With sanctions set in place, you have likely already felt the effects at the gas pump. President Biden signed an executive order on March 8th banning imports of oil, natural gas, and coal from Russia. While Russia is currently the world’s third-largest exporter of crude oil and the world’s second-largest exporter of natural gas, only about 8% of U.S. oil and refined product imports came from Russia in the last year. Why are we seeing prices spike when the United States only receives a small portion of its energy sources from Russia? The answer goes beyond our country’s borders.
Strained Global Supplies
Oil prices are at the highest level since 2008, reaching over $100 a barrel. Since the ban, prices have continues to soar. Several European countries have taken their own action, but have stopped short of a complete ban due to their greater reliance on Russian oil and natural gas. The European Union collectively sources nearly half of its gas from Russia. As these countries receive less oil and gas from Russia, they will need to source it from another country. This tightens the global supply and is a reason the U.S. and other countries are facing higher prices.
The United States’ Role
Earlier this year, the United States became the world’s largest LNG exporter for the first time. Even prior to Russia’s attack on Ukraine, the U.S was a driving force in easing Europe’s energy crisis. The U.S. is among the most equipped to help allies meet their energy needs, but it may come at a cost. As the Russia-Ukraine conflict continues and global supplies are strained, it is likely oil and natural gas prices will continue to increase. Countries around the world are ramping up production of oil and gas with a goal to keep prices from spiking even more, but this cannot happen overnight. In the meantime, you can take steps to find security in your energy rates during this tumultuous time.
Lock in Rates
Despite the current uncertainty in the energy markets, Brilliant Source Energy’s online comparison tool allows you to secure savings, gain greater budget certainty, and ease the effects of the current conflict on your bottom line. You can lock in the best rates without a broker in just a few simple clicks. All you need to get started is a recent utility bill! Find security in your electric and gas rates by comparing with our online tool today.
Interested in discussing the current market and your energy rates further? Contact us today! We would be happy to help.
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