DE PERE, WI (WTAQ) — Will the conflict in Ukraine impact your pocketbook?
A St. Norbert College professor says the answer is clear: yes.
“Russia makes up around 10% of the global demand for oil,” said Dr. Marc Schaffer on Friday. “However, only about 8% of US imports are from Russia, so there’s less of an impact for us.”
That impact is still going to be noticeable. Countries that place embargos on Russia will seek to make up their oil exports elsewhere, increasing the demand on available oil, and raising global costs. Gas could hit over $4 a gallon over the summer, when demand typically spikes anyway.
Oil prices, however, aren’t all that’s rising.
“There are a couple of important exports, like wheat, that are really large, globally, and coming from Russia and Ukraine,” said Schaffer. “That’s an area that could be of concern moving forward.”
High gas prices will add additional pressure on supply chains as good become more expensive to transport. On top of already existing supply chain problems and a labor shortage, Schaffer says the war could have a rippled effect throughout the economy, and northeast Wisconsin, with its heavy reliance on manufacturing and transport, could soon witness the economic impact of the war.
