The recent increase in oil and gasoline prices has been attributed to a number of factors, including tensions in the Middle East and Ukrainian drone attacks. North Sea Brent crude oil has risen above $90 a barrel for the first time since October, while gasoline prices have also increased in Switzerland, with some places charging over 2 francs per liter of unleaded petrol 95. Despite these price increases, energy researcher Christof Rühl suggests that current oil prices are not exceptionally high when adjusted for inflation.
Rühl explains that the recent price hikes are due to OPEC+ countries reducing production, as well as conflicts in Ukraine and the Middle East impacting the oil market. Ukraine’s successful drone attacks on Russian oil infrastructure have contributed to price increases, creating uncertainty in the market. The situation in the Middle East, particularly Israel’s actions in Syria, also adds tension and the potential for oil price escalation. The West’s concerns about Russian oil exports and Ukraine’s attacks pose new challenges and risks for the oil market.
While traders have profited from significant price fluctuations in recent years, the current geopolitical landscape and conflicts have created uncertainties and opportunities for profits in the oil trading sector. The situation remains fluid and unpredictable, with potential for further price increases depending on geopolitical developments. The recent upheavals could make 2024 a promising year for trading companies in the energy sector.
