Almost all the prices we pay for products or services are interconnected, depending on each other. However, nothing influences the market situation more than the price of oil, and in the last period it has undergone important fluctuations.
You don’t have to have a car to affect you the price of petrol or diesel. Even bread from the store depends on the price of oil, as well as monthly maintenance bills and more. In this context, it comes as very worrying news about what has happened to the price of oil lately.
The price of oil rose on Monday to the highest level in the last two years. This sad reality for consumers is very good news for investors, signaling that the economic recovery is in full swing and things will be more and more rosy. The acquisition value was also influenced by the prospect of increasing demand, in the context of intensifying vaccination campaigns around the world.
As a reference, the price of Brent oil rose on Monday to $ 73.64 per barrel, the highest level since April 2019. The price of West Texas Intermediate (WTI) oil, a benchmark in the US market, rose to $ 71.78 per barrel, a maximum after October 2018.
Why the price of oil has risen and the price of everything will rise
“The two major oil indices are trading close to the highest levels in two and a half years, amid a mix of optimism about demand and OPEC + production limits,” said Stephen Brennock, an analyst at the brokerage firm. PVM.
The situation in the oil market has also been influenced by the fact that road traffic is returning to pre-pandemic levels in North America and most of Europe. In addition, the number of flights is increasing, with the easing of restrictions imposed during the pandemic, leading to increases in oil prices over the past three weeks.
Another good news that has had consequences in the market is the optimism of investors after the G7 summit a few days ago. In that context, the richest countries in the world have tried to present an image of cooperation on major issues, such as the recovery from the pandemic and the donation of 1 billion doses of vaccines to poor countries.
Ideally, demand for oil and oil derivatives, such as gasoline and diesel, would decline. Unfortunately, Russia and Saudi Arabia, two of the world’s largest oil-producing countries, intend to defy the recommendations of the International Energy Agency (IEA) and continue investing in oil and gas. The situation is in major opposition to calls to significantly reduce the use of fossil fuels for the purpose preventing the worsening of the climate crisis
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