Russia Just Moved Troops Into Ukraine & Global Gas Prices Could Get 'Ugly' Because Of It

Gas prices could reach an all-time high ⛽️

Russia Just Moved Troops Into Ukraine & Global Gas Prices Could Get 'Ugly' Because Of It
Global Staff Writer

The global economy is getting worried about Russia moving into Ukraine, and drivers are about to feel the pinch.

War breaking out is a big concern in Europe right now, and it is hitting many people in their wallets at the gas pump.

The global benchmark price of oil hit a seven-year-high on Tuesday after Russian President Vladimir Putin ordered troops to enter part of Ukraine overnight, the New York Times reports. Natural gas prices have also gone up, and it all means that fuel and heating bills are likely going to get more expensive, whether fuel comes from Russia or not.

"The weeks ahead could be rather ugly with rising prices, especially if Russia pursues a strong-arm invasion of Ukraine," Patrick De Haan, GasBuddy's head of petroleum analysis, wrote in a blog just before Russia made its move.

Russia is a major oil producer for the world, and Western powers might decide to respond by imposing sanctions. That could drive up the global average price of oil, which would make it even more expensive for you to fuel up your car.

"Russia accounts for one in every 10 barrels of oil consumed globally, so it is a major player when it comes to the price of oil, and of course, it's really going to hurt consumers at the petrol pumps," Maike Currie, an investment director at Fidelity International, told BBC News.

Many nations have already said they won't send troops to defend Ukraine, so trimming Russia's business is one of the other options available.

Germany has already pulled its support for a gas pipeline from Russia to Europe, and that might be just the beginning. The U.S., U.K., Canada, Japan and other countries have promised to impose sanctions on Russia for moving into Ukraine; refusing to buy Russian oil and gas is one way to do it.

Russia has not said that it's "invading" Ukraine at this point, even though it's sending in troops. Instead, Putin claims that he's moving in to "recognize the independence and sovereignty" of two pro-Russian regions in Ukraine, the Associated Press reports.

The U.S. disagrees: "We think this is, yes, the beginning of an invasion," Jon Finer, the U.S. principal deputy national security advisor, told AP.

"An invasion is an invasion and that is what is underway."

Sameen Chaudhry
Global Staff Writer
Sameen Chaudhry was a Staff Writer for Narcity’s Global Desk focused on TikTok drama and based in Toronto, Ontario.