NEW YORK (PIX11) — The Russian invasion of Ukraine may be happening thousands and thousands of miles away, but Americans are already feeling the effects here at home.
Patrick De Haan, head of petroleum analysis with GasBuddy, said most states can see prices go up anywhere from 5 to 10 cents a gallon over the next week or two. That might last longer if the conflict drags on.
“The primary impact is on the American wallet they will be paying more at the pump,” said De Haan.
The national average today stands at $3.55 a gallon. De Haan said the national average has the potential to eventually rise to $4 a gallon.
“Russia’s oil flow it is the second largest, borderline third largest oil producer globally,” said De Haan. “What happens in Russia can have a profound impact in terms of energy availability and price.”
It’s not only at the pumps, you’ll start to see increases in your home heating bills as well.
Russia also exports a lot of agriculture. Corn and wheat are two key imports for us. We also import metals and steel from Ukraine.
John Rosen is a professor of economics at the Pompea College of Business at the University of New Haven. He said the war is “disruptive” for the economy as a whole.
“If this war gets bigger that by definition creates huge demands for all kinds of things, what happens when demand goes up, prices go up,” he told PIX11 News.
The invasion has obvious political ramifications, and experts say it will also put a strain on the American economy, which has already been hampered by rising inflation and supply chain issues, amidst the ongoing pandemic.
While sanctions may be the next step after failed diplomacy, Rosen said sanctions will affect supply
“The purpose of sanctions is to hurt Russia by limiting trade, limiting Russia’s ability to earn money by selling things,” said Rosen. “Whatever they’re selling that they want us to buy, we will no longer be able to buy which means that will hurt our economy too.
The stock market is reacting. This morning, stocks plummeted and prices for wheat, oil and other commodities surged.
But markets around the world stabilized after President Joe Biden addressed the nation.
“I know this is hard and that Americans are already hurting,” said the president. “I will do everything in my power to limit the pain the American people are feeling at the gas pump.”