In recent days, the international energy exchange has witnessed a remarkable and swift upturn in oil prices, raising concerns across various sectors. The price of a barrel of oil has surged by an average of 6% in just one week, with the Brent crude oil benchmark currently commanding $88 per barrel, and the WTI variant hovering around the $86 mark.
This remarkable price escalation is not limited to Brent and WTI crude; it extends to Russian oil as well. The price of Urals crude has exceeded $73 per barrel, surpassing the price ceiling imposed by both the European Union and the G7 by a substantial $13 margin. Over the same week, the price of Russian oil increased by an average of 6.5%.
The driving force behind this rapid price surge primarily hinges on future expectations within the oil market. There is a prevailing belief that key oil-producing nations, including Russia, Saudi Arabia, and OPEC member states, are contemplating reducing their oil supply. Such a reduction in supply would inevitably create a supply-demand imbalance, leading to a scarcity of oil in the market and consequently elevating fuel prices worldwide.