Oil prices are skyrocketing as the Russian invasion of Ukraine raises concerns about oil supply. The international benchmark Brent Crude fell 1.2% to $109.81 per barrel on Thursday, while the United States Crude per barrel prices jumped 5.7% before ending down 2.5%. Both benchmarks are up more than 40% for 2022, and the U.S. oil benchmark briefly topped $130 per barrel this week.
Furthermore, the spike in gas prices due to the Russia-Ukraine war has replaced COVID-19 fears as the prime deterrent to traveling this spring and summer. The travel industry might face significant headwinds due to rising oil and gas prices. In addition, global jet fuel prices have surged to near 14-year highs aligning with crude oil supply shortfalls. In turn, fare hikes are set to undermine the recovery in air travel.
