- According to an energy expert, consumers will have to be ready for higher prices as Russia continues its war in Ukraine and disruptions to the global energy market persist, writes CNBC.
- Washington and its allies have imposed sanctions on Russia, including energy exports, which could lead to inflation.
- “What is the price consumers in the West are willing to pay for the principle that you cannot invade a sovereign nation [and] rip up the security architecture in Europe?” she asked.
- “I think consumers simply have to prepare for higher prices, and there has to be that conversation with citizens,” she told CNBC’s “Capital Connection” on Monday.
- Croft said the Biden administration is trying to turn towards countries like the United Arab Emirates and Saudi Arabia to pump more oil but is facing resistance.
- She said that Middle East oil producers have “back channels” they can call in Russia, but it’s unclear which side these governments are taking.
- Ahead of the meeting between OPEC and its allies this week, Croft said concerns about U.S. commitment to the region and limited spare capacity for energy, given that investment in the industry contracted in 2020.
- There may be 2 million to 2.5 million barrels per day available for crude oil, but beyond that, there’s not much spare capacity. Supply is also “largely maxed out” from major gas supplier Qatar, she added.
- Photo by Foto-Rabe from Pixabay
