Here Are Things To Know About The Recent Rise In Oil Prices

Oil prices have risen, complicating the global fight against inflation. Drivers are paying more for gasoline and truckers and farmers more for diesel.

The spike is helping Russia pay for its invasion of Ukraine and weather sweeping Western sanctions aimed at crushing the country’s wartime economy.

Above all, Saudi Arabia’s decision to cut back how much oil it sends to global markets has elevated prices. The Kingdom has slashed production by 1 billion barrels a day.

The cutback was announced in July, with the decision to extend the cut through the end of the year revealed this month. Russia has also extended its own cut of 300,000 barrels a month.

Saudi Arabia Could Add Barrels Back If …

Simply, tighter supply pushes prices higher. On Monday, international benchmark Brent oil traded at just under $94 per barrel, up from $74 before the Saudi cut was first announced.

While oil prices can be volatile and might briefly top $100 in the coming months, they’re unlikely to stay there, said Jorge Leon, senior vice president for oil markets at Rystad Energy.

Keep Reading

The expert expects prices to stay in the low $90s on average in the last three months of the year. That’s still high historically, he said, supported by a “resilient” demand for fuel.

Nonetheless, Saudi Arabia will review the cuts each month and could add barrels back if prices cross levels that could seriously exacerbate inflation in countries purchasing oil, Leon added.

Financial Speculation Also Pushing Oil Prices Higher

Obviously, the world’s second-largest oil supplier wouldn’t want inflation to rise as it could kill economic growth – and lower growth ultimately means lower oil demand.

On top of the substantial cutbacks, there are a string of other factors affecting oil prices, including the demand – which is picking up along with rebounding travel following lockdowns.

Another factor pushing the rates higher is financial speculation and it appears investors are piling into the oil market with bets that prices will rise.

Gary Peach, oil markets analyst at Energy Intelligence, has blamed “a flood of speculative money”, stressing “fundamentally there is still plenty of oil … to meet demand for now.”

Desk Writer

Human stories, politics, diplomatic developments, climate and daily updates – all are assured to be at your access as we strive to bring the best news to you.

Recent Posts

Why the 2025 Flu Season in the UK Started Earlier Than Usual — and What It Means for Your H3N2 Vaccine Timing

The UK is experiencing a relatively early onset of the 2025 flu season, and this has caused anxiety in terms… Read More

December 6, 2025

K-Pop’s Influence on Global Sneakers: How Vans’ Fantasy Collabs Are Changing Fashion Trends

K-pop is not only ruling the world music charts, but the genre is also redefining the fashion trends from head… Read More

December 6, 2025

Rise of Digital Detox Cabins Across Europe: Why Screen-Free Retreats Are Becoming a Travel Trend

Due to the rise in the tech-driven nature of Europe, there is an increasing number of individuals yearning to get… Read More

December 6, 2025

IndiGo Flight-Cancellation Chaos in India: Impacts on Travel and Transport

Thousands of passengers have been stranded, and the impact of mass flight cancellations by IndiGo in India has brought extensive… Read More

December 6, 2025

U.S. Executive Action Against a Transnational Extremist Network Framed as a Global Security Priority

The recent U.S. Executive Order against a transnational extremist network is gaining a growing international movement that is backing the… Read More

December 6, 2025

Sustainable Weight Loss vs “Quick Fix” Meds: Routines, Food Habits, and Realistic Results

Sustainable weight loss is built on consistent habits, not miracle pills or overnight transformations. Instead of addressing the underlying causes… Read More

December 6, 2025

This website uses cookies.

Read More