Experts say Russia-Ukraine crisis could affect gas prices
GREENVILLE, N.C. (WITN) - As the threat of Russia invading Ukraine looms, there’s concern about the possible economic impact on the U.S.
Gas prices could be immediately affected. According to AAA, the average regular gas price in the U.S is $3.51. It is a price that Greenville resident Thurston Council says is expensive.
“From here to Raleigh, you end up putting $50 to $60 in your tank just to get back to Greenville,” Council said.
The supply and demand coming out of the pandemic has driven gas prices up.
With the threat of Russia invading Ukraine, UNC Economics Professor Patrick Conway says Russia could cut off its oil supplies to the world. While he believes there would be no direct impact on the U.S, it would impact NATO allies.
“It will lead to a cut-off in natural gas flows because those flows go from Russia through Ukraine and into Europe,” Conway said.
Since the Russia/Ukraine crisis began, oil prices rose to more than $90 per barrel over the past few weeks.
If the situation pushes prices to more than $110 a barrel, inflation will jump over 10% on a year-over-year basis. The U.S. economy hasn’t hit that high since 1981, according to government data.
Russia is the world’s second-largest oil provider. The U.S. is first.
Copyright 2022 WITN. All rights reserved.