Russia’s invasion of Ukraine shakes up global energy markets

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A compressor station is seen on the Yamal-Europe gas pipeline – which connects Germany and Poland to natural gas fields on Russia’s Yamal Peninsula – in the Polish town of Wloclawek on February 19, 2022.

(Omar Marques/Getty Images)

Russia’s invasion of Ukraine and subsequent Western sanctions will contribute to higher oil and natural gas prices in the coming months, undermining the economic recovery of major oil consuming countries from COVID-19 and will exacerbate the high levels of inflation that hit the poorest segments of society. the hardest. Global energy prices soared just hours after news broke of Russia’s invasion of Ukraine on Feb. 24. European benchmark light sweet Brent futures initially jumped 9%, hitting $105 a barrel for the first time since 2014, before falling back below $100 a barrel later in the day. Benchmark Dutch TTF futures contracts for Western European natural gas, meanwhile, rose 60%. The European Union, the United Kingdom and the United States are all expected to announce significant sanctions against Russia in the coming days. But the sanctions package that US President Joe Biden unveiled on February 24 is not designed to…

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