Oil and gas prices soar as fallout from Russia’s Ukraine attack intensifies
Oil and gas prices are soaring, with prices at UK petrol pumps hitting a new high as Russia’s escalating invasion of Ukraine continues to cause turmoil in the energy markets.
The price of a barrel of Brent crude oil moved past $111 (£83) on Wednesday, its highest level since early July 2014, despite a decision by the US to release, with its allies, about 60m barrels from their strategic reserves, in an attempt to stabilise global energy markets.
Gas prices also rose, with the UK’s rising almost 40% to 398p a therm in morning trading, not far from the all-time high above 450p seen in late 2021.
The increase threatens to exacerbate a cost of living crisis that has prompted predictions of £3,000-a-year energy bills for households in Great Britain, with rising energy prices set to pile further pressure on already soaring inflation.
Russia continues to pump supplies into Europe but the war in Ukraine threatens near-term disruption and is increasingly isolating the world’s second-largest producer of oil and gas from global energy markets.
BP, Shell, ExxonMobil and the British Gas owner, Centrica, have vowed to unwind billions of pounds worth of Russian ties in recent days.
On Wednesday, the organisers of the annual World Energy Congress, due to be held in Russia, looked poised to cancel the event as sponsors reviewed their participation.
Despite the soaring price, the Opec oil cartel and its allies are likely to stick to modest plans for output rises when they meet later on Wednesday, officials have said. Increased production typically relieves pressure on global prices.
The average cost of a litre of petrol at UK forecourts was at a fresh high of 151.67p on Tuesday, up from 151.16p on Monday, according to the data firm Experian
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