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How Persistently High Oil and Gas Prices Could Affect Luxury Real Estate

As anyone with a car will likely have noticed, oil and gas prices have been at record highs lately. Prices, which had already been steadily rising since the height of the pandemic, shot up shortly after Russia invaded Ukraine in February.

It followed a dip during the pandemic, when global activity ground to a halt. As vaccines were rolled out, lockdowns lifted and economies recovered, energy prices had begun to creep upwards too. Then the war began and the U.S. and other countries announced bans on, or reductions of, Russian oil and gas imports. Brent crude hit $127.98 on March 8, up from $68.87 in December 2021 and $19.33 in April 2020.

More recently, natural gas prices have been hovering near 14-year highs, while oil prices, which came off their early March highs, have again been edging up. A gallon of gasoline in the U.S. cost $4.10 last week, up 43% from a year ago.


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