Oil prices have jumped by more than five percent following reports of Russia's attack against Ukraine last night, thereby, pushing the Brent futures beyond $100 per barrel.
The price hike—which is also reflected in the US-benchmark West Texas Intermediate (WTI) crude's increase to $99 a barrel from the previous closing of about $94—was accompanied by global condemnation of the Russian government, which launched its attack while the United Nations Security Council was in session to call on Moscow to deescalate the situation in Eastern Europe.
The Government of Belize is among the countries that have voiced its condemnation against Russian aggression. Via a press release, GOB said, "Belize roundly condemns Russia’s unjustified and unprovoked attack on Ukraine. Russia’s invasion of Ukraine is a blatant breach of international law and of its obligations under the United Nations Charter. It also constitutes an unacceptable violation of Ukraine’s sovereignty and territorial integrity."
Analysts have been predicting for weeks that escalation in the region would push up prices. Recently, in a February 3rd, 2022, Reporter interview with Ambassador Daniel Gutierez, an energy-industry contributor, he warned, "If Russia invades Ukraine, we [Belizeans] are going to feel the pinch.”
Gutierrez had explained that if Russian energy—which accounts for eleven percent of global supply—is taken off the world market, oil and gas would see an enormous price increase. By extension, all their derivatives, which include Liquefied Petroleum Gas (LPG), diesel, jet fuel, kerosene, and others can likewise be impacted.
He further explained that since Belize imports approximately half of the country's electricity from Mexico through Comisión Federal de Electricidad (CFE) and their manufacturing process requires fossil fuels, Belizeans can expect the cost of electricity to go up.
Other industries that could be affected include the agricultural sector, as fertilizer requires natural gas, specifically methane, to complete its manufacturing process. He also noted that the increase in the price of diesel, which is used in machinery to harvest crops, could become more costly.
Russia, according to the US Energy Information Administration (EIA), is the world’s third-largest oil producer, accounting for eleven percent of global supply.