FORT WAYNE, Ind. (WANE) – On December 5, the United States will have it’s sanctions on Russia come into full effect as a waiver ends.
But what does that mean for gas prices exactly?
The Washington post, citing J.P. Morgan, said that the gas price could triple once the sanctions fully take place.
In the same article J.P. Morgan says that, the Washington Post claims that we may see gas move as a result of sanctions as soon as October.
But Gas Buddy’s Petroleum expert Patrick DeHaan says it’s far too early to put a number on anything.
“It’s merely speculation at this point, it could be 0% or it could be 500%. It’s just someone’s guess, and I hate to throw my hat in the ring and make a guess,” Said DeHaan in an interview Wednesday.
He points out that much rests on what European authorities do, and while Russia may be a big part of the puzzle, they aren’t the whole picture when it comes to gas prices.
“The concern is that more stringent sanctions on Russia are going to limit Europe’s option to buy crude oil. They’re going to have to buy oil from someone the question is who has oil for them to buy right now,” said DeHaan.
He also thinks we won’t see big changes from sanctions for months as the December 5th date is still quite some time away
Something that he’s sees as a more immediate threat is hurricane season and the delicate position refineries play in the gas equation.
He notes that while prices are in a slow free fall, the next few weeks are a bit “hazy.” Uncertainty is still the only certain thing we can expect from a market so fragile.
“It’s all held together by string at this point.”