Seems like nothing can stop oil from going all the way up! This week, the UAE announced that fuel prices will increase by more than 13% across the nation amidst rallying global prices. Since February this year, fuel prices in the UAE have progressively risen, with global oil prices staying above $100 a barrel for most of 2022. Maybe, UAE drivers need to start thinking of switching off their engines altogether and moving away from petrol and diesel-run vehicles (making it a perfect time for EVs!)
Crude has soared this year as the crisis in Europe tightened global supplies at a time of rising demand, depleting stockpiles and boosting product prices to all-time highs. Oil prices have also been lifted as US motorists kick off the nation’s busy summer-driving season just as authorities in China loosen anti-virus curbs that had hurt energy consumption.
In other oil news, some OPEC members are mulling over the possibility of suspending Russia from the OPEC+ deal that limits the amount of crude oil that each member can produce. The thinking behind it is that suspending Russia’s role in the group could allow other members to increase oil production at a quicker pace.
Why it matters
Global geopolitical tensions are creating new growing demand from nations who are looking to wean themselves off from Russian oil. On the flip side, the rising costs of crude is continually being passed on to consumers, who are already feeling the squeeze as household costs rise across the board.
