Why energy prices are heading back to pre-Ukraine war levels

Global energy prices are falling back to levels seen before Russia’s invasion of Ukraine. The most active US WTI crude futures shed more than 30 percent from its recent high in March. Likewise, prices of natural gas and coal also declined to multi-month low on weak demand expectations.

Since the start of Russia-Ukraine tensions, global energy prices have been extremely volatile. Crude oil prices in overseas platforms hit a fourteen-year high on supply concerns. Natural gas and coal prices also jumped to new highs on fears over restricted supplies from the world’s largest fossil fuel exporter, Russia.