: $8 a gallon gas? Brace for higher oil prices as Russia escalates Ukraine conflict, RBC energy guru says

by | Sep 21, 2022 | Stock Market

American consumers may have gotten a bit of a break from sky-high gas prices over the past few months as the prices for oil and natural gas in the U.S. have eased off their peaks from earlier this year. But any U.S. consumers who think $5-a-gallon gasoline is a thing of the past might want to listen to what Helima Croft, head of global commodity strategy at RBC Capital Markets, has to say.

During a panel entitled “$8 a Gallon Gas?,” Croft told MarketWatch editor in chief Mark DeCambre that she believes global oil and natural gas prices could surge later this year as Russia escalates the conflict in Ukraine while Western sanctions take full effect. “We should be bracing for an escalation,” Croft said in response to a question about Russian President Vladimir Putin’s decision to announce a partial mobilization of reservists on Wednesday — the latest sign that Russia is escalating the conflict in Ukraine following its most recent military setbacks. The escalation was accompanied by another round of nuclear saber-rattling. See: Markets ignore Putin’s nuclear saber-rattling. Why that might change. “We should be bracing for more disruption in the energy markets come December,” Croft said, highlighting Dec. 5 — the date when a sanctions waiver for energy-related payments made to Russia expires —- as a potential inflection point. But before that happens, American consumers and oil traders will also need to grapple with another issue: …

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