As you might have learned from a normal drive to your petrol and gas stations recently, there has been a spike in the prices of these commodities. It has been documented that these commodities majorly Gasoline have reached an all-time high of $4.33 per gallon in the USA and other countries likewise.
Though some speculate that these spikes are a plot for large oil and gas companies to price gouge, it is well known that the war between Ukraine and Russia plays a major part in the price of these commodities.
Russia is one of the major exporters of oil and gas in the world. They are third behind the US and Saudi Arabia in production, about five million barrels of crude oil are exported each day with more than half sent to Europe. This is key in terms of global supply volumes.
This has significantly increased the amounts gas companies pay for wholesale gas supply and trading which is then passed to consumers who are feeling the weight. Russia imports account for 8% of the total UK oil demand and 3% of USA demand whilst 40% of the EU natural gas imports are from Russia.
The prices of oil and gas are expected to drop-in recent times but are not expected to drop entirely till at least November this year.