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CARL AZUZ: Oil, wheat, and rain all factor into our show
this Wednesday.
I'm Carl Azuz.
We're thankful to have you watching,
and we hope you're doing well.
Our first subject today, a US ban on Russian energy.
Until now, the international sanctions, the penalties
on Russia's economy for its invasion of Ukraine,
have not included a ban on buying Russian coal,
natural gas, or oil.
Russia is one of the world's biggest producers
of these commodities, selling them as a crucial component
of the nation's economy.
And America has continued to buy Russian oil
after the country attacked Ukraine on February 24.
Critics have said, by doing that, the US government has
helped Russia pay for the war.
And American Republicans and Democrats
have pressured the Biden administration
to stop importing Russian energy commodities.
The decision announced by President Joe Biden yesterday
does not apply to Europe.
Nations there are more reliant on Russian energy
than America is and they're already
struggling with record high prices for gas and heat.
But the US did take another step on its own yesterday
to increase the strain on the Russian economy.
JOE BIDEN: Today, I'm announcing the United
States is targeting the main artery of Russia's economy.
We're banning all imports of Russian oil and gas and energy.
That means Russian oil will no longer be acceptable at US
ports and the American people will deal another powerful blow
to Putin's war machine.
This is a step that we're taking to inflict further pain
on Putin, but there will be cost, as well,
here in the United States.
Defending freedom is going to cost.
It's going to cost us, as well.
CARL AZUZ: So what did the president mean by that?
Last year, the US imported about 8% of its energy from Russia.
3% was in crude oil alone.
It's not a huge amount.
But because the price of crude oil
is the single biggest factor in the cost of gasoline,
further increases in US gas prices are expected.
As we reported last fall, rising gas prices
were already a problem in America
before Russia invaded Ukraine.
As demand for goods increased during the COVID pandemic, so
did the demand for energy to transport those goods.
The temporary closure of some coal mines in China
impacted global energy prices.
The recent decision by some oil-producing countries
to increase their output gradually, instead of rapidly,
contributed to oil price rises.
And Republicans have said the Biden administration's limits
on oil and gas production in the United States
have made oil more expensive there.
The White House says it's authorized the release of tens
of millions of barrels of oil from the Strategic
Petroleum Reserve.
It's hopeful that'll help ease prices.
And it's recently held talks with Venezuela,
an ally of Russia and rival of the United States,
to possibly resume US oil purchases from the South
American country.
Meantime, gasoline prices have hit a record high in the US.
Tuesday's national average was $4.17 per gallon,
but the state of California has the nation's highest prices.
CAMILA BERNAL: At the gas station where I am right now,
a regular gallon of gas is $6.95.
For that premium, we're talking $7.55.
And as this crisis in Ukraine continues,
it could continue to increase.
Ever since the invasion of Russia in Ukraine,
we've seen those prices go up by $0.37.
Just in the last two days, we've seen a $0.19 increase.
And so that's what people are worried about,
because this is, obviously, affecting everyday Americans.
Take, for example, rideshare drivers.
They are greatly impacted.
I spoke to one of them, Benjamin Valdez, who works
at least three days a week.
And he says this increase in prices for him
makes a huge difference.
Take a listen.
BENJAMIN VALDEZ: I was putting in probably
around $60 for a full tank.
And now it's climbed up to about 90.
So it's getting up there.
If I drive 200 miles, I'm spending $50 in gas.
And if I make $150 to $200 in that night,
I'm cutting at least one third of my expense in gas alone.
CAMILA BERNAL: And it's not just him.
I talked to many rideshare drivers
who told me other drivers that they know have been quitting
over the last couple of months.
And they say this is the final straw.
But it's not just the rideshare drivers.
It's the taxi drivers, the truckers,
and everyday Americans.
Anyone who gets in a car, who has a commute
will notice the difference.
And unfortunately, the situation could get worse.
Camila Bernal, CNN, Los Angeles.
CARL AZUZ: The last time gasoline
hit a record price was in 2008.
It was $0.06 cheaper per gallon then.
But it's not the only thing many Americans use daily that's been
impacted by the war in Ukraine.
Russia is one of the biggest global exporters of fertilizer.
If it stops shipping that, as it's threatened to do,
expenses for the world's farmers could go up
and that could lead to higher food
prices, which hit record highs around the world in February.
The war is also having an impact on wheat.
More than a quarter of the world's exports of that
come from Russia and Ukraine.
And this week, wheat also set a new price record.
- Every week, bakers at Fresh Baguette Bakeries
in the DC metro area make 10,000 loaves
of bread and 37,000 croissants.
FLORENT DE FELCOURT: They are all very fresh.
- That's a lot of baking and a lot of flour.
FLORENT DE FELCOURT: All these ingredients are using flour,
and that's why it's a concern, this price increase.
- Flour is made from wheat, and it's up more than 7% this week
and up 68% this year alone, prices
not seen globally since 2008.
FLORENT DE FELCOURT: We are expecting a major increase
in the weeks or months to come, especially if the war
is going to last for long.
- Russia and Ukraine supply 29% of the world's wheat exports
and now they're at war.
Countries are reluctant to trade with Russia,
and Ukraine's ports are closed, stalling exports.
That means buyers are looking to a smaller
group of wheat-producing nations,
sending prices here at home up.
KATIE DENIS: There's going to be additional price pressure
that we're already seeing in futures markets
that's going to come to bear.
At some point, companies are going
to have to make decisions about what
that means for their pricing for consumers.
- Fresh Baguette owner Florent de Felcourt says
he hasn't raised prices yet.
The cost of bread and cereal for US consumers, up 6.8%
last year because of inflation, making
it harder to do business.
FLORENT DE FELCOURT: Last year, it was pretty tough.
So for the time being, we have not increased our prices
since the beginning of the war.
When I see the future price on the wheat,
it's pretty sure that it will go up.
- As market demands for wheat begin to shift,
the US could ramp up exports to other countries.
Agricultural analysts agree it's becoming
more unlikely many Ukrainian farmers will be
able to plant wheat this year.
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CARL AZUZ: 10-second trivia.
Which of these countries has the smallest population--
Australia, Venezuela, Poland, or Morocco?
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Despite its large size, Australia has the smallest
population on this list.
Its total population is about 26 million people.
Almost one fifth of them live in the City of Sydney,
and it has been drenched over the past week
by tremendous amounts of rainfall.
In eastern Australia, a year's worth of rain
has fallen in a matter of days.
At least 20 people across the region have been killed.
Roads and property have been covered in water.
Cars have been swept away.
And forecasters say more rains in the forecast for Sydney,
which is the capital of the Australian state
of New South Wales.
As of Tuesday, at least 60,000 people
there were under an evacuation order or warning.
A dam in the area had started overflowing
and flooding low-lying areas.
Meantime, about 450 miles north, the cleanup
continues in the city of Brisbane,
which was hit by heavy storms more than a week ago.
Authorities say the recovery process
there will take months and have a significant impact
on the local economy.
But with more rain likely for the area around Sydney,
people were advised to be on the lookout for dangerous floods.
A Toyota Supra sports car retails for around $60,000.
Its 1960s equivalent, which looked a lot like this,
just sold at auction for 2.5 million.
But this is one of only 351 cars like it ever made,
and it's no ordinary Toyota 2000GT.
It's a 1967 Toyota Shelby 2000GT,
which means it got the racing treatment from US
racing legend Carroll Shelby.
That made this the most valuable Japanese car
ever sold at auction.
Of course, auctioneers want to drive the price as high as they
"Cam-ry," but some folks might 86 the idea and "Ca-roll-away"
before paying that when they could "Tac-ome"
about 41 Supras for that price.
Is this the 4Runner or "Prius-cursor" to more records?
Hey, when it comes to auctions, it just "de-Venza"
on who's in the "va-room."
I'm Carl Azuz.
Some of you are watching from Cheyenne, Wyoming.
Shout-out to the students of Central High School there.
They know the only place we look for shout-out schools
is on our YouTube channel.
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