Gasoline and electricity prices are likely to rise if oil picks up. There are mining farms that currently work with renewable energy. There is no fear of an increase in crude oil.
The effects of wars always extend their tentacles over those who have the least to do with those conflicts. In the case of the current war conflict between Russia and Ukraine, Western countries receive collateral damage.
A curious case is that of the US, where gasoline has reached a high peak due to increased oil prices. What is concerning the most is that electrical energy could also face the same impact, which would be harmful to Bitcoin mining.
The United States of America, although it is a producer of crude oil, is also a large importer of oil. In general, this raw material is subject to rises and falls in its price due to the basic rule of economics and trade, which is supply and demand.
Russia is the ninth nation that exports the most crude oil to the US, which sent just over 90,000 daily barrels to that nation in December, and one of the leading sellers of oil to the European sector.
For the most part, these nations showed a rejective stance on the actions of President Vladimir Putin and his invasion of Ukraine and, therefore, decided not to continue buying oil from the Eurasian nation. The United States of America did the same thing, which banned the import of fossil fuels from Russia a few days ago.
This action led to a significant demand for oil from the Organization of Petroleum Exporting Countries, led by Saudi Arabia, which severely increased the crude price of this administration.
The United States of America purchases millions and millions of barrels of oil from the organization; for this reason, the North American country needs to invest more to obtain the crude that supplies the entire North American national industry.
The oil by-product improved in the large refineries in the southern United States of America gets stored and measured through pipelines to the more than 50 states that the whole nation. In California, in the eastern United States of America, maximums of USD 5.44 reached almost a gallon of gasoline.
Electricity gets Produced, Primarily by Fossil Sources
In that nation, there are thermal plants focused on processing oil. There are steam turbines that convert thermal energy into mechanical energy, which then work as a kind of electric generator.
Local oil gets usually consumed, but imported oil also plays an important role. More than 22 million barrels of crude oil get consumed in the United States of America.
For this reason, there could be high peaks in electricity consumed in the United States of America due to the war. Oil, traded in a global commodity market environment, would play a significant role if the cost of living in the US rose.
By: Jenson Nuñez
