Impact of Ukraine Attacks on Energy
February 22, 2022
Oil and natural gas prices are up across the US, largely due to pandemic pressures and labor shortages. WKRC TV’s Paula Toti asked our John Schmitz if the crisis in Ukraine could further impact prices here and abroad.
Schmitz replied, “Russia is a producer of oil and they’re huge producer of natural gas. Russia produces about 10 million barrels of oil a day, that’s about 10% of the total world production. They sell oil all over the globe. They also produce a kind of natural gas. Italy uses all of its natural gas that it consumes is produced in Russia. Germany 25 to 35% of what is consumed in Germany from natural gas is produced in Russia.”
Schmitz was also asked if releasing oil from US strategic oil reserves would help.
“I wouldn’t call it a long term solution. We have a lot of oil in the strategic oil reserve but it’s usually a very short term impact on prices and supply. Demand has really picked up for gasoline and incrementally, demand for airplane fuel has continued to pick up.”
John B. Schmitz, CFA
Portfolio Manager & Principal
See the interview HERE