Russia Is A Major Supplier Of Oil To The U.S.

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Forbes

As tensions rise between Russian and Ukraine, one of the issues being discussed a lot in the West is what a military conflict may do to oil prices.

Russia is one of the world’s largest oil producers. According to the 2021 BP Statistical Review of World Energy, in 2020 Russia produced 10.1 million barrels per day (BPD) of crude oil and natural gas condensate. That was good for second place behind the U.S. at 11.3 million BPD. Saudi Arabia was third at 9.3 million BPD.

 

However, the U.S. also consumes far more oil (17.2 million BPD) than Russia (3.2 million BPD) or Saudi Arabia (3.5 million BPD). The net result is that the U.S. is a net importer of crude oil, while Russia and Saudi Arabia are major crude oil exporters.

This also means that the U.S. economy is more vulnerable to oil price shocks, while higher oil prices are a net benefit to Russia and Saudi Arabia. Various talking heads have suggested that there will be a $5-$20 premium on oil prices if Russia invades Ukraine.