Oil price skyrockets amid Russia-Ukraine conflict

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The price of oil continues to rise and has gained nearly 4% so far on Thursday morning to R117 per barrel of Brent crude oil.

This follows Wednesday’s 5% rise and brings the price of oil to the highest since 2013.

The Organisation of the Petroleum Exporting Countries (OPEC), with Russia and allies, met to announce that it will increase oil production by 400 000 barrels per day, which is less than was expected.

The current rise in oil prices is the result of rising demand and falling supply, mainly due to sanctions on Russia because of its invasion of Ukraine.

Russian oil exports account for around 8% of global supply.

The International Energy Agency (IEA) has warned that global energy security is under threat and has agreed to release 60 million barrels of oil reserves to try and lower prices.

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