EXPLAINER: What does Ukraine invasion mean for energy bills?

FILE - A worker at a Ukrainian gas station in Volovets, western Ukraine, on Oct. 7, 2015. The gas is still flowing from Russian even as bullets and missiles fly in Ukraine. But the war is raising huge questions about the energy ties between Europe and Russia. The conflict is helping keep oil and gas prices high due to fears of a possible reduction in supplies, and consumers will continue to face financial stress from that. (AP Photo/Pavlo Palamarchuk, File) FILE - A worker at a Ukrainian gas station in Volovets, western Ukraine, on Oct. 7, 2015. The gas is still flowing from Russian even as bullets and missiles fly in Ukraine. But the war is raising huge questions about the energy ties between Europe and Russia. The conflict is helping keep oil and gas prices high due to fears of a possible reduction in supplies, and consumers will continue to face financial stress from that. (AP Photo/Pavlo Palamarchuk, File)

By DAVID McHUGH / AP Business Writer February 25, 2022 7 min read

FRANKFURT, Germany (AP) – Even as gunfire sounded in Ukraine’s capital, natural gas kept flowing normally Friday through the major pipelines from Russia to Europe. But the invasion and accompanying sanctions are casting a shadow over longstanding energy ties, both for the coming weeks and longer term.

The world is already facing high energy prices and a supply crunch that has hit consumers with high utility bills and pain at the gasoline pump. Russia’s attack on Ukraine has whipsawed energy markets, not least because Europe depends on Russian supplies of natural gas. Russia is also a major oil producer.

Here are key things to know about the invasion’s impact on energy:

WHAT’S THE SITUATION WITH OIL AND GAS PRICES?

A barrel of U.S. benchmark crude oil shot past $100 Thursday after Russia invaded Ukraine. Natural gas prices also soared, even as operators say pipelines operated as usual.