Oil prices to reach new high
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The rapidly increasing oil prices in the global market are raising strong concerns of inflation worldwide. The recent wave of inflation has engulfed the 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 and reduced production by Russia and Saudi Arabia on the other side.
Following this increase, oil prices are rapidly approaching $100 per barrel for the first time in 2023. It's worth noting that the Brent crude price reached its highest level of $94 per barrel last week, up from $72 per barrel in June. This increase is the largest in three months, primarily attributed to the attack on Russia's Ukraine.
During the same period, West Texas Intermediate (WTI) crude oil, which is the benchmark for U.S. oil prices, rose from $67 per barrel to over $90 per barrel during the week, recording an almost 4% increase. On the other hand, in the United Kingdom, there has been a moderate increase in petrol and diesel prices.
The Royal Automobile Club (RAC) reports that on Saturdays, the average fuel price was £1.52 per liter, up from £1.43 per liter in June. According to the report, in the United States, where a small portion of the price at the pumps is taxes, petrol has risen by more than 10% to $3.90 per gallon (3.15 pounds per gallon, equivalent to 3.8 liters).
Earlier this month, Saudi Arabia extended its joint production cut of 1.3 million barrels per day (bpd) until the end of the year, which had previously caused a rapid decline in global inventories. The production cut aimed to support prices up to $100 per barrel, with efforts from other OPEC countries as well.
