Rising Oil Prices Push Up Gas Costs for US Drivers, Aiding Russia's War Effort
🛢 Rising Oil Prices Push Up Gas Costs for US Drivers, Aiding Russia's War Effort.
Rising oil prices are impacting consumers, complicating the global fight against inflation, and contributing to Russia's war chest. Several factors are driving the increase in oil prices, including Saudi Arabia's decision to cut back oil exports to global markets, which has tightened supply. Russia, an ally of Saudi Arabia in the OPEC+ oil producers' coalition, has also extended its production cut. This supply constraint has pushed oil prices higher, with international benchmark Brent oil trading at nearly $94 per barrel. While some analysts suggest oil prices could reach $100 a barrel due to robust demand and limited supply, others anticipate prices in the low $90s on average in the last three months of the year. The Saudis have the flexibility to adjust production cuts to respond to changing market conditions, as excessive oil price increases could fuel inflation and harm economic growth.
Oil prices fluctuated within a tight range on Friday, as investors weighed mixed signals from the world's top oil consumers, China and the U.S. Brent crude slipped 13 cents to $83.75 per barrel, while West Texas Intermediate (WTI) fell 4 cents to $79.22.