The oil industry has had a chaotic two years. Crude oil prices were down early in the COVID-19 pandemic; nevertheless, the price has now topped $100 per barrel. Moreover, the worldwide benchmark, Brent crude oil, is currently trading above $111 per barrel. There has been a considerable rise in gas prices worldwide because of the rise in oil prices. If prices continue to rise, as many economists predict, it would stifle economic development, induce decreased consumption, and, in some situations, spark political instability. The increasing gasoline costs have already sparked fatal riots in nations such as Kazakhstan, Iran, and Zimbabwe. And, the significant factors for this have been the rebound in fuel consumption since the height of the coronavirus outbreak and supply difficulties in the aftermath of Russia’s invasion of Ukraine. Even analysts at JP Morgan Chase & Co and Bank of America have predicted that the Russian disruption will send oil prices up to $185 per barrel. Reasons for Rising Fuel Prices Oil has had a history of more significant fluctuations in price than any other asset. The Organization of Petroleum Exporting Countries, or OPEC, is the primary driver of oil price changes. Second is the supply and demand rules. Prices fall when supply exceeds demand, and vice versa when demand exceeds supply. The current instability is because of Russia’s conflict in Ukraine, which has caused crude oil prices to...
