Your sticker shock at the gas pump could soon get a lot more, well, shocking.
The International Energy Agency is warning that economic sanctions on Russia could result in the country’s oil output dropping by 3 million barrels a day, perhaps as soon as next month.
The Paris-based agency said this raises the prospect of “a global oil supply shock” and “the biggest supply crisis in decades.”
“The implications of a potential loss of Russian oil exports to global markets cannot be understated,” the IEA added.
Russia is the world’s third-largest oil producer after the United States and Saudi Arabia.
Although Europe is more dependent on Russian fuel than the U.S., any cutback in global oil supply means energy prices would rise worldwide.
Nothing’s for sure. A diplomatic solution to the war in Ukraine could be reached, which would quickly lower oil prices.
If the conflict continues, however, and if the IEA is correct about Russian oil, we may be in for more pain at the pump.
As they say, stay tuned.