Oil and Gas Prices Impacted by Tensions Oversees

Feb. 25, 2022
By JULIE PARR, KTBS TV

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DALLAS, Texas - A Texas-based fuel supplier says gas prices will likely go up some more before they go down.

TAC Energy CEO Fred Sloan says crude oil prices have been going up over the past year. He says prices are about 35% higher than they were a year ago.

While the war in Ukraine has created some uncertainties in the energy market, Sloan says oil and gas supplies are not an issue for the U.S., and he doesn't believe gas prices will go up dramatically.

"The U.S. market is super elastic, and the U.S. crude supply is not at risk, refinery operations are not at risk, and the fuel that is at the gas station down the street will be there," said Sloan.

He says gas prices are expected to slightly increase in the spring and summer as usual, but as long as there's no major escalations in Europe, prices should slowly decrease of the course of the year.

"Now again, it will be volatile for a while, but the fact of the matter is there is no major supply demand influence that's going to cause prices in our region to get above where we are today," said Sloan.

Meanwhile, Sloan says the Ukraine invasion could have more of an impact on the global grain supply.

Russia and Ukraine together produce nearly a quarter of the world’s wheat.