The rapidly increasing oil prices in the global market are raising strongconcerns of inflation worldwide. The recent wave of inflation has engulfedthe entire world, and there is a strong possibility of further increases,mainly due to the significant rise in oil prices at the global level.
According to reports from international news agencies, there has been a 30%increase in oil prices in China due to growing demand on one side andreduced production by Russia and Saudi Arabia on the other side.
Following this increase, oil prices are rapidly approaching $100 perbarrel for the first time in 2023. It’s worth noting that the Brent crudeprice reached its highest level of $94 per barrel last week, up from $72per barrel in June. This increase is the largest in three months, primarilyattributed to the attack on Russia’s Ukraine.
During the same period, West Texas Intermediate (WTI) crude oil, which isthe benchmark for U.S. oil prices, rose from $67 per barrel to over $90 perbarrel during the week, recording an almost 4% increase. On the other hand,in the United Kingdom, there has been a moderate increase in petrol anddiesel prices.
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The Royal Automobile Club (RAC) reports that on Saturdays, the average fuelprice was £1.52 per liter, up from £1.43 per liter in June. According tothe report, in the United States, where a small portion of the price at thepumps is taxes, petrol has risen by more than 10% to $3.90 per gallon (3.15pounds per gallon, equivalent to 3.8 liters).
Earlier this month, Saudi Arabia extended its joint production cut of 1.3million barrels per day (bpd) until the end of the year, which hadpreviously caused a rapid decline in global inventories. The production cutaimed to support prices up to $100 per barrel, with efforts from other OPECcountries as well.
