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February 23,2022

Andrew Campbell 

Early on February 22, Brent crude prices rose to US$99.50 per barrel. While crude oil prices are approaching $100 per barrel, gasoline prices are expected to skyrocket. The entry of Russian forces into Ukraine following Russian President Vladimir Putin's declaration of independent territories in Donetsk and Luhansk pushed oil prices above US$99 on February 22. 

Because Russia supplies more than a third of Europe's supply, with some of it passing through pipelines in Ukraine, European natural gas futures are extremely volatile. When trading began on February 22, Dutch front-month gas futures rose 13.8 percent, then fell slightly to around 80 euros per megawatt-hour, a gain of nearly 10%.

Russia is one of the world's leading oil and natural gas producers, accounting for 17% of global natural gas production and 12% of global oil production. Russian Energy Minister Nikolai Shulginov told Energy Intelligence that the market's optimal oil price is between $55 and $70 per barrel. When asked if Russia is interested in high natural gas prices, Minister Shulginov said, "We are not interested in high prices; we are interested in consistent supplies."