Russia-Ukraine Crisis, Oil & Gas Prices

February 2022


Severin Borenstein, Faculty Director of the Energy Institute, breaks down how the Russia-Ukraine crisis will impact the price of oil and gas on CapRadio’s “Insight.”

“We’ve seen the price of crude oil going up about $20 a barrel over the last month as people were anticipating this invasion. Now that it has happened oil has jumped a bit more, but not that much–it was already very high. When looking at the increase in oil prices and natural gas prices, and translating that to consumers–not just at the pump but in higher costs of goods, in higher heating prices–it is about $1.50/day higher prices. It affects everyone. For moderate and wealthy people, that’s probably not something that will be a major pinch–particularly in California when compared to housing prices. But for lower-income people, this will be one more thing added onto all of the rising costs that they are facing.”