Monday 22nd Jul 2024
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oil price

Oil Prices Rise Significantly

Oil prices have risen significantly on the international market.
At the moment, an oil barrel costs USD 113 on the international market. The prices have spiked following the Euro-American sanctions on Russia following the Russian invasion of Ukraine. Although sanctions have not been directly placed on the Russian oil industry, large oil companies in the West have been opposing buying oil from Russia.
Experts estimate that 70% of all crude oil produced in Russia has not yet been sold. Russia is the third-largest oil producer in the world. The global oil cartel, OPEC, have announced that they would not increase the global supply of oil. Oil prices are expected to rise.
The last time the price of oil had risen this high had been 8 years ago, it is expected that this would trigger inflation in Europe and the United States.
The price of gas has also been affected; Europe, which imports 40% of its gas from Russia, has experienced a 50% spike in gas prices.
The price of oil fell to USD 20 a barrel in 2020 following an increase in the global oil supply by Russia and OPEC. The price was made to rise following by discussions between the global oil cartel and Russia.
The price of oil rose to USD 75 a barrel by the end of 2021, and at the end of January the price of a barrel was USD 88. Such a rise in oil prices would significantly affect small countries such as the Maldives that are heavily dependant on oil but produce none.
The price of oil and diesel had been changed by STO, the state company that is the Maldives' largest importer of oil, within the past 5 weeks. It is expected that the price of oil would change in the coming weeks, as well.