The conflict in Ukraine could affect several aspects of our economy – especially here in the Midwest, according to Dr. Ernie Goss, professor of economics and finance at Creighton University.
Rising oil prices will affect everyone, but could have a big impact on agriculture, which is a “big user of oil,” he said.
In addition, supply chain issues could get worse.
“The potential of the disruption of trade could be a major impact on the Midwest,” especially considering how important exports are to agriculture, said Goss, Creighton’s Jack MacAllister Chair in Regional Economics.
The price of crude oil was up Thursday morning, but where it will land remains to be seen, according to Meredith Mitts, public affairs specialist for The Auto Club Group, AAA Minnesota-Iowa.
“As the U.S. prices for crude oil went up $5 to $7 overnight (roughly 6%), we can expect to see a 10 to 15-cent increase at our pumps over the next few days,” she said. “Going forward, there is a lot of speculation about price increases and how they will fluctuate, but it will come down to the geopolitical atmosphere and how the sanctions and reactions to the conflict impact the supply in an already tight market.”
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