Consumers are already paying high prices for energy and fuel, with demand surging following the easing of COVID restrictions. The impact of this has caused 28 energy suppliers to cease trading by the end of 2021. The UK inflation rate is at 5.5% which is the highest it has been in 30 years. Although the UK are not heavily reliant on Russia for gas and energy, there are concerns sanctions could constrict supplies and drive-up prices worldwide. The price of UK natural gas futures soared nearly 30% on Thursday.
The back Investec said the conflict, along with surging global demand, had made gas and electricity soar. However, Investec said prices had risen even higher following Russia’s invasion of Ukraine and would remain elevated for months.
The Kremlin’s latest decision to deploy forces to Donetsk and Luhansk which are both two breakaway regions in eastern Ukraine, has caused jolts in the market and hikes in commodity prices. This week, crude oil price reached the highest price they have been since June 2014, reaching almost $131 (£99) per barrel as well as coal and energy prices skyrocketing. Energy experts say oil prices could easily rise another $20 a barrel if Mr. Putin seeks to occupy more or all of Ukraine. Such an outcome would also cause huge problems for western oil companies that do business with Russia.