Russian oil embargo will retain high petrol prices

Greater global demand and dwindling supply will see people in Denmark needing to acclimate to steep prices … maybe to the end of the year

The EU’s decision last night to cut two-thirds of its oil imports from Russia will do more than hamper the Kremlin’s coffers. 

It will probably mean that the high petrol prices in Denmark will be here to stay for a while longer.

With increased global demand as the world slowly emerges from the COVID-19 pandemic, taking a big oil player like Russia out of the equation will lead to a smaller supply of oil globally. 

And you don’t need to be a rocket scientist to figure out that greater demand + less supply = higher prices. 

READ ALSO: More price hikes in retail on the way

Might stretch into 2023
“The typical citizen will need to get used to the high petrol prices we’ve seen this year continuing in the coming months or through the rest of the year,” Jens Nærvig Pedersen, a Danske Bank commodity analyst, said according to Avisen Danmark. 

The EU agreed to phase out oil transported by ship from Russia by the end of the year, while oil delivered by pipeline will be halted when possible – a more fluid timeline.

The EU decision is designed to hit Russia economically in light of its invasion of Ukraine.