Rising oil prices prompt concern among citizens



by SEAD DEDOVIC

Rising oil prices prompt concern among citizens
© Justin Sullivan / Getty Images News

Even after the end of COVID-19, a huge crisis appeared in the world, which continues year after year. Prices seem to vary from month to month, so it's hard to predict what's in store for the next few months. However, regarding the oil price, there have been changes.

Oil prices increased for the second consecutive week on world markets, mainly due to concerns about the escalating Middle East conflict potentially disrupting oil supplies. In the London market, barrel prices rose by 1.4 percent to $92.16, and in the American market, they increased by 1.2 percent to $88.75.

The citizens of these two countries are angry and aware of how powerless they are in this situation. They emphasize that the oil price is not the only problem. The prices of many other things have jumped enormously. Price fluctuations throughout the week were closely tied to Middle East developments.

When conflict tensions between Israel and Hamas rose, oil prices surged, only to come under pressure when the situation appeared to ease. Despite Israel's talk of a possible ground invasion of Gaza, no such action has occurred.

It would be really great if the conflict between these countries calmed down for a long time, and it would be best if it stopped completely.

Analysts

Analysts from Commerzbank noted that the threat of an Israeli ground offensive drove the oil price increases, but the supply situation remained unchanged.

Supplying will remain the same as before. At least that's positive news. Conversely, oil prices were affected negatively by the U.S.' s decision to ease sanctions on Venezuela, allowing its oil to reenter the global market. Venezuela will require time to increase production due to limited recent investments in the sector.

The price of a barrel on the London market has risen by over seven percent since the beginning of the year, and by more than 10.5 percent on the American market after two weeks of consecutive growth. UK citizens cannot understand why such changes are happening, but unfortunately they have to accept them.