Name: Thomas Arthur M.

Tolentino
Course & Section: PSC31
Subject: Political Economy
Professor: Sir Jumel G. Estrañero
University: De La Salle University - Dasmariñas

The Epicenter of the Damage We Perceive as High Oil Prices

The energy industry found itself in a volatile footing after Russia, Europe’s leading
exporter of hydrocarbons, resorted to war with Ukraine during the first quarter of
2022. Expectedly, western powers imposed import bans from Russia's oil supplies.
These restrictions affected the biggest countries including UK and Japan, with the
USA suffering minor adverse effects given its relatively few direct ties with Russia.
Congruently, the US dollar experienced an increase against foreign currencies such
as the pound, the yen, and the euro. This resulted in the increased value of
USD-based commodities that adversely affected the prices of the same commodities
for other currencies such as the Philippine Peso. With crude being exclusively
financed through petrodollars and the USD attaining higher heights, oil prices across
the globe have peaked. In the Philippines, there is no better evidence than the
towering gasoline prices we have seen throughout the year.

References:
1. https://www.reuters.com/business/energy/oil-set-close-higher-2022-turbulent-y
ear-marked-by-tight-supplies-2022-12-30/

2. https://www.gep.com/blog/mind/russia-ukraine-wars-effects-oil-and-gas-indust
ry#:~:text=Both%20the%20invasion%20of%20Ukraine,reopen%20and%20ent
er%20recovery%20phases.

3. https://econofact.org/the-strong-dollar-and-the-war-in-ukraine#:~:text=Increas
ed%20commodity%20and%20fuel%20prices,an%20appreciation%20of%20th
eir%20currency.