Russia-Ukraine conflict upsets global energy market

The conflict between Russia and Ukraine which is on the brink of its first anniversary has significantly impacted the global energy market.

When the war started in Feb. 2022, energy prices shot up worldwide, reaching a 20-percent increase for five months straight.

Reports indicate that prices of the popularly traded West Texas Intermediate crude oil rose more than 15 percent from February 28 to August 3 in 2022.

Energy consumer price indices in the Organization of Economic Cooperation and Development (OECD) and Group of Seven (G7) countries increased consecutively from the start of the conflict until July.

According to reports, several rounds of Western sanctions against Russia, including a price cap of $60 per barrel on Russian sea-borne crude imposed last December, have led to a drop in Russian oil and gas prices.

The United States has now surpassed Russia as Europe’s top energy supplier to fill in the gap from Europe’s embargo on Russian oil products.

But the International Energy Agency has said that Russian oil production and exports are holding up much better than expected because Russia has found new markets for its crude in Asia, such as China, India, and Turkey.