The price for a barrel of Brent crude oil has exploded. In a short time, the price for a barrel of oil flew from $87.5 to $89. Over a longer period of time, the price increase can be described as even greater. In December, the price of oil was still at its lowest point of $74.5. That is an increase of almost 20 percent.
The enormous rise in the oil price in recent months has several causes. For example, the OPEC oil cartel, which includes a large part of the oil-producing countries, has reduced production to drive up prices. This was due to the enormous production decline that was visible in the United States, which caused a large price drop in the months before December.
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Geopolitical circumstances also play a role in the large price increase. For example, Ukraine has attacked several oil refineries in Russia, slowing down oil production there. The conflict in the Middle East also has a flywheel effect on the oil price. The Israeli attack on an Iranian embassy and consulate in Syria further increases tensions, which also drives up the price.
